iHeart Media & Entertainment

Posted on October 16, 2016 by trlevy

by TALIA LEVY and VALERIE POWELL

[16] iHeartMedia Company Logo

iHeartMedia, Inc

200 East Base Road

San Antonio, Texas

HISTORY

iHeart Media was originally founded in San Antonio, Texas under the name Clear Channel Communications. The company was founded by Lowry Mays and B.J. McCombs in 1972. In 2008, the company became private by a leveraged buyout through Bain Capital, LLC and Thomas H. Lee Partners.

iHeartMedia has the widest reach in America for any radio or television outlet with an audience of over a quarter of a billion listeners each month. The company currently covers 150 of the U.S. markets with 858 broadcast radio stations. iHeartMedia delivers a variety of content including music, talk shows, news, and sports through broadcast stations, satellite, online, via smartphones and via live shows. iHeartRadio currently has 92 million registered users with a year-over-year growth of 22% with an increase of 8% in total listening hours. As of September 30th, cumulative upgrades and downloads have reached a new record of 1.1 billion [4].

KEY EXECUTIVES

Bob Pittman [12] Chairman and Chief Executive Officer

Wendy Goldberg [13] Executive Vice President and Chief Communications Officer

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William Eccleshare [15] Chairman and CEO, Clear Channel International

Richard J. Dressler [14] President, Chief Operating Officer and Chief Financial Officer

FINIANCIAL

For the second quarter of 2016, iHeartMedia’s loss widened to $278.89 million due to billboard sales in Turkey that expanded the ongoing debt $56.6 million. The loss was more than five times the amount of 2015’s second quarter loss of $54.66 million [3]. Even though there was a large loss in the second quarter, the company is still generating revenue in the third quarter of 2016 for a total of $857.1 million. Due to a growth in network business and the Presidential Election, digital advertising and broadcast radio primarily drove the growth in revenue of $10.2 million (1.2%) from the previous year’s third quarter revenue [4].

The increase in revenue allows iHeart to stay on top of their current debt of $20.78 billion as of June 30th, 2016. The large debt is mainly due to a buyout in 2008 by two Boston private-equity firms, allowing them to gain 70% of the iHeartMedia Company. Debtwire senior credit analyst, Seth Crystall, explains that iHeart is a “powerful brand” and will continue to increase revenue to make up from their current losses by the transformation of their listeners to their mobile app [3].

[17] Singer Taylor Swift singing at the iHeartRadio Music Awards.

iHEART MUSIC FESTIVALS

The iHeart Music Festival Tour is iHeartRadio’s biggest live musical event, generating a large income for the company, with a portion of the ticket profits going towards the Ryan Seacrest Foundation. iHeartMedia’s President of National Programming Group, Tom Poleman, says, “Fans wait all year to hear who will be playing this tour and we’re thrilled to announce an impressive lineup” [11]. The concerts are held in major cities throughout the country by the iHeartRadio stations in those areas. The Jingle Ball Tour is iHeartRadio’s biggest musical event, generating a large income for the company. The tour is sponsored by Capital One, which allows card holders to gain early access to tickets before going to the general public [7].

[18] Bon Jovi Photographed performing at an iHeartRadio live concert.

The live iHeart Radio concerts are a mutually beneficially event for both the artists involved and iHeartMedia. For example, most recently the artist The Weekend celebrated the release of his new album Starboy in Toronto by headlining the iHeartRadio Canada Jingle Ball. Thirty minutes of his live set was broadcasted on the iHeartRadio App, along with 112 of iHeart Media’s radio stations including KISS in Los Angeles and Z100 in New York [1]. The iHeartRadio Jingle Ball in Toronto also included performances by major artists such as Niall Horan, The Chainsmokers, and Alessia Cara.

[23] iHeartRadio celebrated One Direction’s 2013 album Midnight Memories with a special release party.

iHEART GLOBALLY

Recently, iHeartRadio expanded into Canada with the collaboration of North America’s fastest growing digital audio service, Bell Media [2]. Canadians now have instant access to stations and to free streaming channels via iOS, Android apps, and at iHeartRadio.ca. iHeartRadio Canada uses content from Bell Media, which has over 105 licensed radio stations and 100 streaming channels [2]. With the expansion into Canada, iHeartRadio’s Jingle Ball will now be present in Toronto.

[21] iHeartMedia’s Fiesta Latina is a part of the company’s Hispanic initiative.

This part quarter iHeart partnered with Hispanic radio legend Enrique Santos, to create a new Hispanic initiative to develop new programming content for iHeartMedia across their various platforms. This new initiative recognizes the increasing size of the the U.S. Hispanic community that are both English and Spanish speakers, as well as utilizes Santos’ popular reputation within the Latino community [8].

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[22] iHeart partnered with Telemundo to air the program.

Building off of this new initiative, just this past November iHeart celebrated the best in Latin Music at the iHeartRadio Fiesta Latina. They partnered with Telemundo to air the exclusive TV special and streamed the event live on Telemundo.com. Telemundo is an American-Spanish language television network owned by Comcast through NBCUniversal [10]. The event broadcasted live on iHeartMedia Spanish-Pop, Tropical, regional Mexican and Spanish Adult Hit radio stations all across the country [8].

THE FUTURE

This coming January, iHeartMedia will be launching a new On-Demand music streaming service, that will put them amongst competition of services like Spotify and Apple Music. The iHeartRadio All Access service will offer its subscribers unlimited on-demand listing to over 30 million songs. They will also offer a cheaper option, iHeartRadio Plus, which will gives its subscribers the ability to instantly replay songs they heard on iHeartRadio stations, through the app. According to iHeartRadio,the company has not yet decided how to price the two new services. However, $9.99 a month has become an industry standard for full on-demand subscriptions services. iHeartMedia earns most of its revenue through on-air advertisements, which they still will continue to air, despite the new revenue from the subscription service.

[19] iHeart will be unveiling 2 different On-Demand services. iHeartRadio Plus and iHeartRadio All Access.

iHeartMedia is not the only major radio based company making the switch, Pandora is creating its own on-demand based product estimated to cost $4.99 a month in the near future [6]. According to iHeart, iHeart All Access will “include a full on demand music collection experience – but one still tied directly to radio.” the company said. When listeners hear a song on the radio that they like, for the first time ever they will be able to replay that song or even save it directly to their playlist.

[20] iHeart Radio’s On-Demand service is expected to launch in January 2017.

Sources:

[1] Bliss, Karen. “The Weeknd’s Album Release Day Live Set Broadcast on IHeartRadio.”Billboard. Billboard Music, 26 Nov. 2016. Web. 27 Nov. 2016.

[2] Dupuis, Renee. “IHeartRadio Now Available in Canada: Free Streaming Service Brings Canadians Biggest and Best Music Experience.” Bell Media. Bell Media Canada, 6 Oct. 2016. Web. 29 Nov. 2016.

[3] Hendricks, David. “IHeartMedia’s Second-quarter Loss Widens to $278.9 Million.” San Antonio Express-News. San Antonio Express-News, 4 Aug. 2016. Web. 29 Nov. 2016.

[4] IHeartMedia, Inc. IHEARTMEDIA, INC. REPORTS RESULTS FOR THIRD QUARTER 2016. Rep. IHeartMedia, INC., 9 Nov. 2016. Web.

[5] Karp, Hannah. “IHeartMedia to Launch On-Demand Music Service.” The Wall Street Journal. Dow Jones & Company, 23 Sept. 2016. Web. 15 Oct. 2016.

[6] Lovelace, Berkeley, Jr. “Pandora CEO on On-demand Services: We’re in the Perfect Position.” CNBC. CNBC, 14 Sept. 2016. Web. 29 Nov. 2016.

[7] McAlone, Nathan. “The Biggest Radio Powerhouse in the US Just Took Aim at Apple and Spotify with a New Service.” Business Insider. Business Insider, 23 Sept. 2016. Web. 29 Nov. 2016.

[8] Ross, Kevin. “IHeartMedia, Inc. Reports Financial Results for the Third Quarter Ended September 30, 2016.” Radio Facts. N.p., 10 Nov. 2016. Web. 29 Nov. 2016.

[9] Stine, Randy. “IHeartMedia Shows Revenue Growth in Q3.” Radio World. Radio World, 10 Nov. 2016. Web. 29 Nov. 2016.

[10] Telemundo. “IHeartRadio Fiesta Latina 2016.” Telemundo. N.p., n.d. Web. 29 Nov. 2016.

[11] Vitucci, Danielle. “IHeartMedia Rings in the Holiday Season with the Return of Its Iconic 2016 National “iHeartRadio Jingle Ball Tour Presented by Capital One”.” IHeartMedia Rings in the Holiday Season with the Return of Its Iconic 2016 National “iHeartRadio Jingle Ball Tour Presented by Capital One” | Business Wire. BusinessWire, 11 Oct. 2016. Web. 29 Nov. 2016.

[12] Bob Pittman. iHeartMedia, Inc. Retrieved: November 28th 2016

[13] Wendy Goldberg. iHeartMedia, Inc. Retrieved: November 28th 2016

[14] Richard J. Dressler. iHeartMedia, Inc. Retrieved: November 28th 2016

[15] William Eccleshare. iHeartMedia, Inc. Retrieved: November 28th 2016

[16] iHeartMedia. RadioFacts. Retrieved: November 28th 2016

[17] iHeartMedia. Yahoo News. Retrieved: November 28th 2016

[18] iHeartMedia. VectorNetworks. Retrieved: November 28th 2016

[19] iHeartMedia. Hollywood.com. Retrieved: November 28th 2016

[20] iHeartMedia. Business Wire. Retrieved: November 28th 2016

[21] iHeartMedia. Aaarena.com. Retrieved: November 28th 2016

[22] iHeartMedia. iHeart.com. Retrieved: November 28th 2016

[23] One Direction Last First Kiss IHeartRadio Album Release Party. Perf. One Direction. Youtube, 3 Jan. 2014. Web. 20 Nov. 2016.

Disney

Link

Emma Lipstone and Susy Solino

[1] The Walt Disney Company Logo

The Walt Disney Company

500 South Buena Vista St.
Burbank, CA 91521

Website: thewaltdisneycompany.com
Phone Number: (818) 560 – 1000

Company

The Walt Disney Company was founded on October 16, 1923 by Walter Elias Disney and is headquartered in Burbank, CA. The Company is one of the biggest media and entertainment corporations in the world. [2]. Walt Disney Studios is home to the four major film studios: Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, and Lucasfilm Ltd. The Walt Disney Company also owns and operates Walt Disney Studios Motion Pictures, Disney Music Group, Disney Theatrical Group, DisneyToon Studios, Touchstone Pictures, and DisneyNature. [3].

Disney’s animation studio has produced around fifty-five animated feature films, with the fifty-sixth being Moana that was just recently released. Pixar has produced seventeen films; the most recent being Finding Dory. In 2009, Disney purchased Marvel Studios and has since produced multiple movies based off of Marvel comic book characters including: The Avengers, X-Men, Spider-Man, and Guardians of the Galaxy. Most recently in 2012, Disney acquired Lucasfilm Ltd. which is the studio best known for creating the Star Wars and Indiana Jones franchises.

In addition to popular film franchises, Walt Disney Company owns and operates many television channels that produce popular television series’. The biggest subsidiary under Disney Media Networks is ABC, which produces hit network shows such as Scandal and How to Get Away with Murder. [5]. Disney also owns ESPN and operates A&E Networks in a joint venture with Hearst Corporation, along with a portion of Hulu.

[9] Some of The Walt Disney Company Conglomerates

Financials

The Walt Disney Company (NYSE: DIS) stock has been declining in the past few quarters.

According to the earnings report released on November 10, 2016, operating income at Cable Networks decreased $207 million to $1.4 billion for the quarter due to decreases at ESPN and the Disney Channels. [6].

ESPN has been losing subscribers to online streaming, such as Netflix or over-the-top streaming services. Also, social media has provided access to a lot of breaking news and sports live broadcasting, luring viewers away from cable television. One of the biggest issues facing ESPN and The Walt Disney Company is that the sports cable network has already paid huge rights fees for the next 5 years, yet subscribers are only paying $8 a month to cover the games, which will not exist in a few years. The increase in programming and production costs were due to The Olympics programming internationally, the World Cup of Hockey rights, and higher contractual rates for college sports. [7].

However, the growth at Freeform, which is the old ABC Family, has been very successful this quarter due to lower programming and production costs, as well as a decrease in marketing expenses. These were driven by fewer hours of original scripted programming in the current quarter.

[33] Disney stock prices for last 2 years

Key Executives

[8] Robert A. Iger: Chairman and Chief Executive Officer

[8] Alan N. Braverman: Senior Executive Vice President

[8] Christine M. McCarthy: Senior Executive Vice President and Chief Financial Officer

[8] Zenia Mucha: Executive Vice President and Chief Communications Officer

[8] Jayne Parker: Executive Vice President and Chief Human Resources Officer

Box Office Reports

[12] Movie poster for “Captain America: Civil War” (2016)

2016 was announced as The Walt Disney Company’s most successful International Box Office record to date, reporting over $3.56 Billion through October 16th in just international sales, surpassing their 2015 general record of $3.56 Billion. [10]. This was due to a powerhouse series of releases throughout 2016, beginning with the summer blockbuster Captain America: Civil War which brought in 1.15 Billion worldwide viewers, $745 million Internationally and was named the No. 1 film of the year internationally and globally. [11].

[14] Movie poster for “Zootopia” (2016)

The animated release of Zootopia also helped spike Disney’s international numbers as it was named the biggest animated film to ever be released in China and brought in $682.3 million internationally. Elsewhere in the studio, 2016’s surprise remake of The Jungle Book also experienced a successful release, bringing in $602.3 million internationally as well as the title of “Top Western Film of all Time” in India and the No. 3 film of the year overseas. [13]. Furthermore, while being in the box office for nearly 16 weeks, Finding Dory managed to break records and pass the billion dollar global box office line by bringing in $484.8 million domestically and $519.9 million internationally, making it Pixar’s second billion dollar release and earning a rank as the 5th biggest animated film of all time, globally. [15].

As though breaking international box office records was not enough, Disney also managed to set new industry records for reaching $2 billion domestic (July 16th) and $5 billion global (July 10). As well as earned three new spots in the Hall of Fame for domestic box offices with Finding Dory, Captain America: Civil War, and Zootopia. All of this success comes with still two-and-a-half months and three major releases remaining in their calendar year. [16].

Dory, the star of “Finding Dory” (2016), now the fifth highest grossing animated film of all time. [17]

Recent and Future Releases

[18] Movie poster for Marvel’s “Doctor Strange” (2016)

Marvel Studio’s Doctor Strange represents another large victory for The Walt Disney Company’s Marvel unit, even on the heels of the overwhelming success of Captain America: Civil War.

Doctor Strange was projected to collect anywhere from $65 million to $75 million in ticket sales from the United States and Canada through opening weekend, positively surprising analysts and bringing in $85 million and the #1 rank instead. Since its release, Doctor Strange has made over $200 million domestically and over $400 million internationally, crossing $600 million worldwide in under 4 weeks. [19].

Moana, who was scheduled for a holiday release, has surpassed the high expectations set by Doctor Strange, bringing in over $81 million domestically throughout its opening weekend. [20].

[22] Movie poster for “Moana” (2016)

Further down the line, fans eagerly await the release of Star Wars: Rogue One. As well as Disney’s live action remake of Beauty and the Beast and the recently announced remakes of Mulan and Snow White. All of which are predicted to be box-office heavy hitters. [21].

[23].

Diversity

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[24] Elena of Avalor, Disney’s first Latina princess.

In light of a growing diverse culture and need for representation in the film industry, Disney had begun fighting back against claims of their white-washing tactics and ill representation in their films by allowing more diverse roles in their characters and plots.

[25] Moana, Disney’s first Polynesian heroine.

This year’s recently released Moana revolves around Tahitian and Pacific Islander culture and will be the first Disney film every to be translated into the Tahitian language. [26]. Furthermore, Disney introduced the world to their first Latina princess earlier in the year with the release of their television series Elena of Avalor, a Disney Channel show revolving around latin customs and characters [27] further proving the Company’s desire to focus on promoting more representation of diversity through their media. In addition to their animated strikes towards representation, Disney has announced their search for Chinese actors to star in the upcoming Mulan remake. [28].

jungle-book-to-mulan-all-the-live-action-disney-movies-in-the-works-right-now

[29] Movie poster for Disney’s upcoming live action remake of “Mulan,” featuring a Chinese actress.

Future Integration

In addition to divulging into a more diverse space, Disney has also shown interested in expanding into a more digital and web space with their media. In September 2016, Disney began showing signs of interest for acquiring the social media giant, Twitter Inc., going as far as to work with advisors to put together a potential bid for the company. [30]. While eventually deciding to go against the deal for image reasons, as the social network is known for its reputation of bullying and harassment, the interest in social media gives clear insight that Disney has begun exploring new digital horizons. [31]. Many analysts have taken note of Disney’s interest to expand digitally and predict that the streaming giant, Netflix, might be next on the company’s list of potential assets. [32].

Bibliography

Walt Disney Company Logo. Retrieved November 1, 2016. http://logok.org/disney-logo/
Walt Disney History. Retrieved November 1, 2016. https://d23.com/disney-history
The Walt Disney Company. Retrieved November 1, 2016 https://thewaltdisneycompany.com/about/#our-businesses
Box Office Reports. Retrieved October 28, 2016. boxofficemojo.com
Johnson, Madeleine. June 16, 2016. Your Complete Guide to All the Things Owned by Disney. Retrieved November 21, 2016. https://www.zacks.com/stock/news/220682/your-complete-guide-to-all-the-things-owned-by-disney
November 10, 2016. The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2016. Retrieved November 11, 2016. https://ditm-twdc-us.storage.googleapis.com/q4-fy16-earnings.pdf
October 31, 2016. Disney: ESPN Still has a Big Problem. Retrieved November 2, 2016. http://seekingalpha.com/article/4017145-disney-espn-still-big-problem
The Walt Disney Company About. Retrieved November 1, 2016. https://thewaltdisneycompany.com/about/
The Walt Disney Company. Retrieved November 2, 2016. https://storify.com/LA346TeamDisney/the-walt-disney-company
McNary, Dave. October 17, 2016. ‘Captain America: Civil War,’ ‘Finding Dory’ Push Disney to International Box Office Record. Retrieved October 18, 2016. https://variety.com/2016/film/news/captain-america-civil-war-finding-dory-disney-box-office-record-1201891155/
Tartaglione, Nancy. October 17, 2016. Finding Money: Disney Tops Full-Year Intl Box Office Record with $3.56B+ (So Far). Retrieved October 18, 2016. http://deadline.com/2016/10/walt-disney-studios-all-time-international-box-office-record-captain-america-zootopia-1201837655/
Freeman, Molly. November 25, 2016. Captain America: Civil War Character Posters- Superhero Fight Time. Retrieved November 27, 2016. http://screenrant.com/captain-america-3-civil-war-posters-iron-man/
Laughing Place Disney Newsdesk. October 17, 2016. 2016 International Box Office is Disney’s Best Year Ever. Retrieved October 19, 2016. http://www.laughingplace.com/w/news/2016/10/17/2016-international-box-office-disneys-best-year-ever/
Disney Zootopia. Retrieved November 10, 2016. http://movies.disney.com/zootopia
October 10, 2016. “Finding Dory” Keeps Swimming to $1 Billion. Retrieved October 20, 2016. https://thewaltdisneycompany.com/finding-dory-keeps-swimming-1-billion/
Derisz, Ricky. October 18, 2016. ‘Captain America: Civil War’ Helps Disney Break its Own $3 Billion International Box Office Record…With More to Come. Retrieved October 19, 2016. http://moviepilot.com/p/captain-america-civil-war-disney-box-office-record/4127909
Disney Movies: Finding Dory. Retrieved November 21, 2016. http://movies.disney.co.uk/finding-dory
CS. April 4, 2016. Doctor Strange Filming Wraps as Mads Mikkelsen’s Villain is Revealed. Retrieved November 15, 2016. http://www.comingsoon.net/movies/news/673101-doctor-strange-filming-wraps-as-mads-mikkelsens-villain-is-revealed#/slide/1
Faughnder, Ryan. November 1, 2016. ‘Doctor Strange’ is Expected to Draw a Massive Audience for Disney’s Marvel Studios. Retrieved November 2, 2016. http://www.latimes.com/entertainment/envelope/cotown/la-fi-ct-movie-projector-20161031-story.html
The Associated Press. November 27, 2016. ‘Moana’ Wins Box Office with Huge Opening Weekend. Retrieved November 27, 2016. http://www.nydailynews.com/entertainment/movies/moana-wins-box-office-huge-opening-weekend-article-1.2888989
Acuna, Kirsten and Phillips, Ian. October 26, 2016. Disney Announced all its Movies Coming in the Next 4 Years – Here’s What you have to Look Forward to. Retrieved October 28, 2016. http://www.thisisinsider.com/disney-movie-schedule-2016-to-2019-2016-10/#strange-cumberbatch-will-play-a-surgeon-who-injures-his-hands-severely-in-accident-2
Disney Moana. Retrieved November 25, 2016. http://movies.disney.com/moana
May 23, 2016. Beauty and the Beast Official US Teaser Trailer. Retrieved November 15, 2016. https://www.youtube.com/watch?v=c38r-SAnTWM
Ranere, Dianna. August 12, 2016. Disney’s Elena of Avalor Renewed for 2nd Season #ElenaOfAvalor. Retrieved October 28, 2016. http://www.fsm-media.com/disneys-elena-avalor-renewed/
Lodi, Marie. July 1, 2016. Why People are Upset About this Character’s Weight in Disney’s New Movie “Moana”. Retrieved November 10, 2016. http://hellogiggles.com/moana-maui-people-angry-obese-stereotype/
October 25, 2016. Walt Disney Animation Studios’ “Moana” to be First Film Ever Translated into the Tahitian Language. Retrieved October 26, 2016. https://thewaltdisneycompany.com/moana-first-film-translated-tahitian-language/
Hughes, Ruth. October 16, 2016. Teen Spirit: Meet the new Plucky Disney Princess Elena of Avalor. Retrieved October 17, 2016. http://www.express.co.uk/life-style/life/720813/Disney-Channel-Elena-Of-Avalor-princess
Biek, Katherine. October 5, 2016. Disney Seeks Chinese Actress for ‘Mulan’ Remake. Retrieved November 20, 2016. http://www.whio.com/news/national/disney-seeks-chinese-actress-for-mulan-remake/fG3AO2Pqefhu4NVlI8ycfI/
Edwards, Ally. October 16, 2016. Jungle Book to Mulan: All the Live Action Disney Movies in The Works Right Now. Retrieved October 17, 2016. http://moviepilot.com/posts/3590427
Roettgers, Janko. September 26, 2016. Disney is Looking into Buying Twitter (Report). Retrieved October 20, 2016. http://variety.com/2016/digital/news/disney-twitter-acquisition-possible-1201870392/
New Statesman. October 18, 2016. Disney Didn’t Buy Twitter- Partly because it Can’t Master the Bare Necessities. Retrieved October 19, 2016. http://www.newstatesman.com/science-tech/social-media/2016/10/disney-didn-t-buy-twitter-partly-because-it-cant-master-bare
Williams, Trey. October 5, 2016. Netflix Said to be in Disney’s Crosshairs, and Analysts see a Streaming Rationale. Retrieved October 21, 2016. http://www.marketwatch.com/story/disney-remains-center-of-merger-talk-this-time-its-netflix-2016-10-03
The Walt Disney Company (DIS). Retrieved November 20, 2016. https://finance.yahoo.com/quote/DIS?p=DIS

Comcast/NBCU

Posted on October 16, 2016 by shmarath

by Alex E. Álvarez, Olivia Maguire and Shruti Marathe

Comcast Corporation [1]

Comcast Corporation
Comcast Center
1701 JFK Boulevard
Philadelphia, PA 19103

Company Overview

COMCAST is a global media and technology company composed of four businesses, with COMCAST Cable and NBC Universal being its two primary entities. The cable division is one of the largest in the United States providing video, internet and phone services to individuals and businesses under the XFINITY brand. NBC Universal manages news, entertainment in all its forms and sports, including broadcast and cable networks, television production companies, television station groups, filmed entertainment and Parks and Resorts. Its other two businesses are Spectacor and Ventures focused more on business and management. [2]

Key Executive: Brian L. Roberts, Chairman and CEO. [3]

New Venture Abroad

Euronews Logo [4]

Michael Peters, CEO of Euronews [5]

COMCAST is venturing in a new market as it is in talks with European broadcaster, Euronews, to buy a stake in the company. The stake is estimated to be between 15 to 30% of the company, and they aim to find a deal by the end of this year. The branch NBC News is looking to strengthen Euronews’ offerings, but keeping it as a collaborative partnership. This network airs in more than 150 countries and more than ten languages, and it will allow a new visibility for NBC Universal.

Egyptian billionaire Naguib Sawiris pauses during a Bloomberg Television interview in London, U.K., on Thursday, May 24, 2012. Sawiris said he'd be willing to sell his Telekom Austria AG stake to Carlos Slim's America Movil SAB if the Austrian government is uncooperative. Photographer: Simon Dawson/Bloomberg via Getty Images

Naguib Sawiris | Photographer: Simon Dawson/Bloomberg via Getty Images [6]

Naguib Sawiris, an Egyptian billionaire, holds a 53% stake, and will remain the controlling shareholder.

Furthermore, Euronews has made moves this past year to expand worldwide launching Africanews, a sister channel, in January, a subsidiary in Singapore in October, and some distribution pacts in Latin American in May. CEO, Michael Peters, renovated the identity of Euronews with a new mission statement focused more on a “global experience of news, knowledge and culture”. [7] [8]

The Secret Life of Pets

600x875_pts_wild_duke6_rgb_0328_2-1-600x875

The Secret Life of Pets Movie Poster [9]

At the box office, COMCAST’s biggest success was The Secret Life of Pets, which reached third place in movies with highest total gross of all time from Universal Pictures. In 2016, the movie that reached the highest position, besides The Secret Life of Pets, was Jason Bourne, which reached the 31^st position of all-time.

Screenshot from Box Office Mojo [10]

According to Box Office Mojo, the film had a production budget of $75 million, the film made a total gross of $104 million in its first weekend, and it ranked first place for its first two weekends [10].

It was released in more than 4,000 theaters, which shows that it was expected to be a hit. The movie has a total domestic gross of more than $350 million, and more than $500 million in the foreign market adding up to an amount very close to the billion mark. After 21 weekends from its release, The Secret Life of Pets is still in more than a hundred theaters, and making an average of $1,000 per screen. Deadline reported that due to the success in the box office, Universal and Illumination, the production company, set the release date for a sequel in July 13, 2018. [11] Merchandising has also contributed to profits. Comcast has sold Secret Life of Pets themed toys in stores and online.

Harry Potter

Comcast’s deals with the Harry Potter franchise spell success for the conglomerate going forward. Comcast subsidiary Universal Studios holds theme park rights to Harry Potter, and maintains high profit from Harry Potter World in Florida. The newly released motion picture, Fantastic Beasts and Where to Find Them, add to the franchise.

Attendance at the parks is expected to increase with new excitement about Harry Potter being generated. Comcast also has the potential to generate greater income in China with the piloting of a Universal Studios resort in Beijing. ^[12]

Conceptual image of Universal Studios Beijing resort

Comcast’s screening rights to the Harry Potter films is also beneficial. NBC has acquired the rights to screen all eight Harry Potter films and the coming movies of the Fantastic Beasts series. ^[13]Streaming access includes the cable networks like USA and Syfy. Such rights will benefit NBC content as a whole as it brings in viewers.

Movie poster for Warner Brother’s Fantastic Beasts and Where to Find Them. NBC has streaming rights beginning July 2018.

Trouble with the FCC

Comcast received some bad press last month when forced to pay a $2.3 million civil penalty to the Federal Communications Commission (FCC). ^[14] The dollar amount marks the largest FCC fine ever held to a cable operator. Comcast followed through as they were persecuted for charging customers for services and equipment they didn’t order. Over 1,000 customers complained for the charges on the premium channels, DVRs, etc. that they didn’t order. Some customers reported expressly telling Comcast they didn’t want certain services and were still charged. Travis LeBlanc, the chief of the FCC Enforcement Bureau, released a statement saying “”It is basic that a cable bill should include charges only for services and equipment ordered by the customer — nothing more and nothing less.” ^[15]Comcast worked to remedy the problem.

Comcast Buys Out Ed Snider

The Comcast Corporation bought the remaining 24% stake in the Comcast Spectacor company, that was owned by Philadelphia Flyers creator, Ed Snider. Ed Snider and his family owned the last 24% of Comcast Spectacor, the overseeing company of the Philadelphia Flyers and the arena in which they play, The Wells Fargo Center, among a few other businesses. This purchase will grant the Comcast Corporation 100% ownership of Comcast Spectacor. The deal was put into motion after Snider died from a terminal illness earlier this year.

Ed Snider, creator of the Philadelphia Flyers [16]

The purchase includes becoming full time owners of the Philadelphia Flyers hockey team. The Flyers are worth $660 million dollars, according to Forbes, although exact purchasing numbers of the entire buy are not available at this time. Ed Snider was the CEO of Spectacor, which fused in 1996 with Comcast to form Comcast Spectacor; however, at the end of this deal no parts of Ed Snider’s family will have any ownership of any of the Spectacor businesses. [16]

[1]

Logo of the Philadelphia Flyers [18]

Netflix to Xfinity X1

Soon, Netflix will be available on Comcast’s Xfinity X1 devices. This move is said to raise the total number of subscriptions to Netflix in the United States, anywhere from 4 to 5 million more subscribers with the new partnership, according to Cowen & Co. Customers of Comcast’s Xfinity X1 can sign up for Netflix directly through the service with Comcast then directly billing the customers on their Comcast bill for the normal $9.99 Netflix rate. Comcast says that them directly billing for Netflix is as an added benefit to its customers. Details have not been made public but it is circulating that Netflix will only pay a one-time “bounty fee” to Comcast for any new subscribers it gains through the deal. Netflix’s Co-founder says the merge will reduce the annoyance of switching between different cables and plugins and that consumers can access their favorite content without switching from one system to another. [17]

A man scrolls through a selection of viewing choices on the Netflix Inc. application on a tablet device in this arranged photograph in London, U.K., on Tuesday, Jan. 5, 2016. Netflix Inc., which delivered the best return of any stock in the S&P 500 last year, has ambitious plans for this year so it can produce something new next year: serious profits. Photographer: Chris Ratcliffe/Bloomberg via Getty Images

Man carefully selecting which content he wants to view [19]

Sources

[1] Comcast Logo. Image. Corporate Comcast: News + Info. Logo Media Library. Retrieved November 28, 2016. http://corporate.comcast.com/news-information/logo-media-library

[2] Comcast Corporation. Company Overview. Retrieved November 25, 2016. http://corporate.comcast.com/news-information/company-overview

[3] Brian L. Roberts. Image. Corporate Comcast: News + Info. Executive Biographies. Retrieved November 28, 2016. http://corporate.comcast.com/news-information/leadership-overview/brian-l-roberts

[4] Euronews. Image. Retrieved November 28, 2016. http://www.euronews.com/

[5] Michael Peters. Image. Lyon Mag. Retrieved November 25, 2016. https://www.lyonmag.com/article/76248/michal-peters-8220-euronews-doit-se-rinventer-avec-le-numrique-8221

[6] Naguib Sawiris. Image. October 16, 2016. “Naguib Sawiris, Wind Mobile Founder: I Am ‘Finished with Canada'”. Huffington Post. Retrieved November 28, 2016. http://www.huffingtonpost.ca/2013/10/16/naguib-sawiris-finished-with-canada_n_4109239.html

[7] Reuters. November 11, 2016. “NBC Universal Is In Talks for a Stake In This European Network”. Fortune. Retrieved November 25, 2016. http://new.fortune.com/2016/11/10/comcast-nbc-news-euronews/

[8] Barraclough, Leo. November 11, 2016. “NBC News, Euronews in Talks for Strategic Partnership”. Variety. Retrieved November 25, 2016. http://variety.com/2016/tv/global/nbc-news-euronews-talks-strategic-partnership-1201915855/

[9] The Secret Life of Pets. Retrieved November 28, 2016. http://www.thesecretlifeofpets.com/

[10] Box Office Mojo: The Secret Life of Pets. Retrieved November 25, 2016. http://www.boxofficemojo.com/movies/?page=main&id=illumination2015.htm

[11] Tartaglioni, Nancy. August 2, 2016. “‘The Secret Life of Pets’ Wags Past $400M Global; Sets Sequel Release Date”. Deadline. Retrieved November 25, 2016. http://deadline.com/2016/08/secret-life-of-pets-crosses-400-million-global-box-office-sequel-release-date-1201797380/

[12] Press, Associated. “Universal Signs Deal for Beijing Theme Park.” The Hollywood Reporter. Web. Retrieved Nov. 29, 2016. http://www.hollywoodreporter.com/news/universal-beijing-theme-park-deal-823339

[13] Smith, Gerry. “NBC Buys Rights to ‘Harry Potter,’ ‘Fantastic Beasts’ Franchises.” Bloomberg.com. Bloomberg. Retrieved Nov. 29, 2016. https://www.bloomberg.com/news/articles/2016-08-08/nbc-buys-rights-to-harry-potter-fantastic-beasts-franchises

[14] Gonzales, Richard. “Comcast Fined $2.3 Million For Improperly Charging Customers.” NPR. NPR, Retrieved Nov. 29, 2016. http://www.npr.org/sections/thetwo-way/2016/10/11/497588744/comcast-fined-2-3-million-for-improperly-charging-customers

[15] Wattles, Jackie. “Comcast Hit with FCC’s Biggest Cable Fine Ever.” CNNMoney. Cable News Network, Retrieved Nov. 29, 2016. http://money.cnn.com/2016/10/11/news/companies/comcast-fine-fcc/

[16] Carchidi, Sam. Sept. 23rd, 2016. “Comcast buying remaining Fyers’ shares from Snider’s Estate.” Philly.com. Retrieved Nov. 29, 2016 http://www.philly.com/philly/sports/flyers/20160923_Comcast_buying_remaining_Flyers_shares_from_Snider_s_estate.html

[17] Spangler, Tom. Nov. 4th, 2016. “Netflix Launching on Comcast X1 Next Week, Could Yield Up to 5 Million New Subs.” Retrieved Nov. 28, 2016 http://variety.com/2016/digital/news/netflix-comcast-x1-launch-1201909773/

[18] Philadelphia Flyers, Image, nhl.com, http://flyers.ice.nhl.com/club/page.htm?id=80263

[19] Shen, Lucinda. Aug. 8, 2016. Image. “The Majority of Netflix Subscribers will be International Within 2 Years” Retrieved Nov. 29, 2016 http://fortune.com/2016/08/23/the-majority-of-netflix-subscribers-will-be-international-within-2-years/

CBS Corp.

Posted on October 16, 2016 by bdsanche

Jordana Lanz, Adam Schoenberg, Bryan Sanchez

CBS Corporation Logo[1]

History

CBS Corporation originated in 1927 as the United Independent Broadcasters. From 1928 to 1997 the company transitioned from its original name to Columbia Broadcasting System, Inc. and then to CBS Inc. It was not until the mass media company was purchased for $5.4 billion by Westinghouse Electric Corporation that it evolved into CBS Corp. in 1997[2]. Viacom Inc. acquired CBS for $45 billion in 1999. Six years later, the companies split but both remained controlled by Sumner Redstone through National Amusements. Today, CBS Corp. remains as a major media conglomerate, operating within the entertainment industry as a leader in cable, publishing, radio, film, and interactive media.[3]

Finances

In Q3 2016, CBS Corp. reported its highest quarterly diluted EPS in the history of the company. Third quarter revenue rose 4% to $3.4 billion, led by a 32% growth in retransmission fees, revenues from CBS Television, and growth of their digital platforms. This continued growth in revenue has allowed for a 6% increase in operating income, now standing at $798 million, with some offset from increased spending in programming. National ad revenue fell 3%, but this was due to preemptions from the Democratic and Republican conventions, the first Presidential Debate, and competition from the Olympics.[4]

Revenues from entertainment rose by 1% to $1.95 billion, while revenues from cable networks were up by 14% to $598 million. Apart from growing retransmission and licensing fees revenue, CBS All-Access and Showtime’s over the top service, now draw in 2 million subscribers collectively. CBS’ decision to stream Star Trek: Discovery, as well as 3 yet unnamed shows, exclusively on All-Access[5], will help them reach their goal of 4 million subscribers by 2020.[6]

On 4 July, 2016, CBS announced that it would be separating its radio business. An IPO will be held in early 2017, with full separation by 2018. After CBS Radio’s 2015 restructuring, total costs amounted to $36.8 million, with $18.9 million in severance payments and $4.4 million in cancelled contracts; in preparation of the departure, CBS Radio has borrowed $1.46 billion through a $1.09 billion senior secured loan due 2023[4].

Live Content

NFL Logo[7]

Logos of Republican and Democratic Parties[8]

2016-08-01-1470024501-2875993-rioolympics

Rio 2016 Logo[9]

CBS’s primary television network is one of the most watched in the country, one filled with robust live content. These marquee broadcasts of both major parties’ conventions, the first Presidential Debate, and broadcasts of the 2016 Olympics attract massive audiences despite advertising revenue losses caused by 10-hours of primetime preemptions [4]. The company had strong ratings in each of the presidential debates, highlighted by the 10.4-rating/15% share they achieved during the second debate[10]. The company has also benefitted from broadcasting NFL football from the AFC conference as well as five Thursday Night Football games per their recent agreement with NBC and the NFL [11].

Original Content

Promotional image for Bull, starring Michael Weatherly(pictured above)[12]

Title Card for Season 5 of The Big Bang Theory[13]

The network is also successful due to its strong history of original content, both new and old. The Big Bang Theory has consistently ranked as a top scripted series this fall, posting strong numbers as a live program (3.1 rating) and syndicated series (5.4 rating)[14]. The show was previously ranked as the most viewed on live television and consistently draws over 14 million live viewers[15]. Currently there are talks to create a spin-off titled Sheldon, produced by the same creators of The Big Bang Theory [16]. CBS’s Bull is TV’s most watched new series based on live and delayed viewing. The drama drew an average of 17.6 million viewers over the shows first six episodes, and is bolstered by strategic scheduling of the program behind the ever-popular NCIS[17]. Kevin Can Wait is TV’s #1 new comedy, drawing an audience average of 11.8 million live and online through week six, and most recently scoring within the top five for new series in total viewers and viewership within the 18-49 year old demographic[17]. With full ownership of all these shows, both old and new, the organization has positioned itself to monetize additional content across all CBS platforms for years to come, as they did so successfully this past year on their over the top services.[4]

ufkevinjames_pres_cleared_2weeks_c430_hr01_prores422_p_878941_640x360

Promotional Image for Kevin Can Wait, staring Kevin James(pictured above)[18]

CBS All Access

CBS All Access Logo[19]

In the fall of 2014, CBS Corp. launched “CBS All Access,” a digital subscription package allowing users access to thousands of episodes and full seasons of past and current CBS programming, as well as live stream content, for $5.99 a month. This offer includes current primetime programs made available immediately after first air. This past August 2016, CBS Corp. announced an addition to that existing offer, providing viewers a $9.99-per-month option with no advertisements [20]. Although the live-stream content will continue airing commercials during the broadcast, the ability to stream real-time on any device is a continuation of the company’s priority to provide customers with mass content on wherever platform preferred [21].

While other companies are similarly offering packaging deals, CBS Corp. is more hesitant than other major conglomerates to combine their programs with those offers. AT&T’s DirecTV Now—an over-the-top service offering over 100 channels for $35 per month—will fail to include features of CBS content by launch (November 30th, 2016) due to unsettled financial negotiations. If an agreement remains unachieved, DirecTV Now will become a direct competitor for CBS in providing TV content. And so the potential success of the AT&T owned service without CBS programming could directly threaten CBS’s influence in the industry. However, a DirecTV Now failure to succeed would increase CBS corp.’s leverage[22].

Potential CBS-Viacom Merger

Although CBS Corp. and Viacom (which both remain controlled by the Redstone family through National Amusements) split in 2006, the two separate companies have been collaborating with financial advisors to review a possible re-merger [23]. While the deal would force CBS to inherit Viacom’s debt caused by a decrease in affiliate revenue and yearly net income, CBS Corp. CEO Leslie Moonves recognizes the benefits of securing Viacom owned Paramount Pictures. The potential merger would not only grant CBS possession of MTV, Nickelodeon, and Comedy Central, but also the rights to a studio to create original content to be distributed [24]. If the two companies agree to merge, the partnership will allow heavy leverage for negotiating with cable distributors[25].

CBS Radio Split

CBS Radio Logo[26]

In the spring of 2016, CBS Corp. released a memo regarding the pursuit of CBS Radio transitioning to a standalone company. Shortly after, CBS filed its IPO with the SEC. This past fall, CBS announced a detailed financing plan for the radio business to work as an independent, publicly traded company[4]. Under the name “CBS Radio Inc.,” the division “will eliminate intellectual property licensing agreements with CBS so that it can keep using the “CBS” mark in call letters.” The split will provide CBS Radio an industry advantage because of the current value of the profitable local stations leading in news and sports radio, while additionally offering professional growth for the radio employees. However, the separation will allow CBS Corp. the freedom to utilize operating segments in competition with CBS Radio, which will increase appeal to investors. This is a risk for CBS Radio, which generates much smaller financial resources than their parent company.[28]

Works Cited

CBS Corporation Logo. Digital image. Https://www.nyse.com/publicdocs/nyse/events/images/CBS_web_1920.png. N.p., n.d. Web. 29 Nov. 2016.
“Timeline: The History of CBS.” NoCable.org. N.p., n.d. Web. 29 Nov. 2016
“CBS CORPORATION ANNOUNCES PROPOSED $1.46 BILLION DEBT FINANCING BY CBS RADIO INC. IN CONNECTION WITH THE SEPARATION OF THE CBS RADIO BUSINESS.” CBS Corporation. N.p., n.d. Web. 29 Nov. 2016.
Corporation, CBS. “CBS Corporation Reports Third Quarter 2016 Results.” PR Newswire: Press Release Distribution, Targeting, Monitoring and Marketing. PR Newswire Association LLC, 3 Nov. 2016. Web. 29 Nov. 2016.
“Where Star Trek: Discovery Will Air – CINEMABLEND.” CINEMABLEND. N.p., 2016. Web. 30 Nov. 2016.
Porch, Scott. “CBS Digital Chief Says CBS All Access Targeting to Hit 4 Million Subscribers by 2020.” Decider | Where To Stream Movies &Amp; Shows on Netflix, Hulu, Amazon Instant, HBO Go, 16 Nov. 2016, decider.com/2016/11/16/cbs-all-access-targeting-4-million-subscribers-by-2020/.
NFL Logo. Digital image. Http://i.nflcdn.com/static/content/public/static/img/share/shield.jpg. N.p., n.d. Web. 29 Nov. 2016.
Republican and Democratic Party Symbols. Digital image. Https://thebrandbuilder.files.wordpress.com/2008/09/logo-politics1.jpg. N.p., n.d. Web. 29 Nov. 2016.
2015 Rio Olympics Logo. Digital image. Http://cdn.mos.cms.futurecdn.net/8a1813ebb675372564938ce7419479a3.jpg. N.p., n.d. Web. 29 Nov. 2016..
Littleton, Cynthia, and Oriana Schwindt. “Trump-Clinton Second Debate Ratings Fall 21% With 66.5 Million Viewers.” Variety. Variety Media, 10 Oct. 2016. Web. 29 Nov. 2016.
Deitsch, Richard. “NBC, CBS to Split Two-year, $450 Mil. Thursday Night Football Package.” Si.com. N.p., 1 Feb. 2016. Web. 28 Nov. 2016.
Bull Title Card. Digital image. Http://www.2016auditions.com/wp-content/uploads/2016/11/bull-poster.jpg. N.p., n.d. Web. 29 Nov. 2016
The Big Bang Theory Title Card. Digital image. Http://basementrejects.com/wp-content/uploads/2012/09/big-bang-theory-season-5-title-card.jpg. N.p., n.d. Web. 30 Nov. 2016.
Porter, Rick. “‘Big Bang Theory,’ ‘Empire’ and Football Lead Week 9: Broadcast Top 25 and Network Rankings.” TV By The Numbers by Zap2it.com. Tribune Media Company, 22 Nov. 2016. Web. 29 Nov. 2016. / Porter, Rick. “Syndicated TV Ratings: ‘Ellen’ Ties ‘Live with Kelly’ in the Week of Nov. 7-13.” TV By The Numbers by Zap2it.com. Tribune Media Company, 23 Nov. 2016. Web. 29 Nov. 2016.
Levin, Gary. “New TV Season Finds Hits (‘Bull,’ ‘Survivor’), but More Misses (‘Exorcist,’ Anyone?).” USA Today. Gannett Satellite Information Network, 26 Oct. 2016. Web. 29 Nov. 2016.
Andreeva, Nellie. “‘The Big Bang Theory’ Eyes Young Sheldon Spinoff Prequel Series On CBS.” Deadline. Penske Business Media, 07 Nov. 2016. Web. 29 Nov. 2016.
“2016-17 Season Ratings for New TV Shows (week 9) – Canceled TV Shows – TV Series Finale.” Canceled TV Shows – TV Series Finale. TV Series Finale, 22 Nov. 2016. Web. 29 Nov. 2016.
Kevin Can Wait Promo Card. Digital image. Http://thumbnails.cbsig.net/CBS_Production_Entertainment_VMS/2016/05/18/688093763801/UFKEVINJAMES_PRES_CLEARED_2WEEKS_C430_HR01_ProRes422_P_878941_640x360.jpg. CBS, n.d. Web. 29 Nov. 2016.
CBS All Access Promo Card. Digital image. Http://trekcore.com/blog/wp-content/uploads/2016/01/cbs-aa-header.jpg. N.p., n.d. Web. 29 Nov. 2016.
“CBS Launches Commercial-Free Streaming Option.” The Wall Street Journal. Dow Jones & Company, n.d. Web. 29 Nov. 2016.
“CBS ALL ACCESS” ROLLS OUT COMMERCIAL-FREE OPTION FOR SUBSCRIBERS.” CBS Corporation. N.p., n.d. Web. 29 Nov. 2016.
“AT&T’s Online Version of DirecTV Said to Launch Without CBS.” Bloomberg.com. Bloomberg, n.d. Web. 29 Nov. 2016.
“Viacom and CBS Boards Hire Advisers for Potential Merger.” The Wall Street Journal. Dow Jones & Company, n.d. Web. 29 Nov. 2016.
Lee, Edmund. “Here’s What It Would Take for CBS and Viacom to Merge.” Recode. N.p., 28 Sept. 2016. Web. 29 Nov. 2016.
Https://www.facebook.com/CNBC. “Shari Redstone Said CBS, Viacom Are Right to Explore Merger.” CNBC. CNBC, 14 Nov. 2016. Web. 29 Nov. 2016.
CBS Radio Logo. Digital image. Https://cbskfrog.files.wordpress.com/2012/05/cbs_radio_logo.png. N.p., n.d. Web. 29 Nov. 2016.
“CBS CORPORATION ANNOUNCES PROPOSED $1.46 BILLION DEBT FINANCING BY CBS RADIO INC. IN CONNECTION WITH THE SEPARATION OF THE CBS RADIO BUSINESS.” CBS Corporation. N.p., n.d. Web. 29 Nov. 2016.
“After Split, CBS Radio Will Make a Name For Itself.” Insideradio.com. N.p., 12 July 2016. Web. 29 Nov. 2016.

Sony Corporation

Posted on October 16, 2016 by crtraver

Charlotte Traver, Brendan Weaver, David Sorokanich

Sony Entertainment Logo [15]

Company

Located in New York, NY, Sony Corporation of America is the US headquarters of Sony Corporation, which is based in Tokyo, Japan. Sony is involved in multiple businesses including electronics and mobile, film and television, music, gaming, digital services, and others. Sony employs about 125, 300 people and recorded annual sales of $71.7 billion of the fiscal year ending in March 2016.

Background

Sony Electronics is a leading provider of audio/video electronics and products. Sony Mobile is also a leading company in providing video, game, audio and communications technology products. Sony Pictures Entertainment is a huge innovator in major motion picture production and produces major blockbusters regularly. Sony Music Entertainment is one of the most well-known global recorded music companies and features artists famous on both a local and international scale. Sony/ATV Music Publishing works alongside Sony Music Entertainment and is the world’s leading music publisher. Sony Interactive Entertainment LLC is known for the PlayStation, a popular gaming console owned by millions of Americans. Other businesses that may not be as well known include Sony DADC, Sony Biotechnology Inc., Micronics, Inc., and Sony Card/Sony Rewards. [7]

Sony Pictures Executives

CEO of Sony Entertainment where he oversees the Sony’s global enterprise including Sony Music Entertainment, Sony Pictures Entertainment, and Sony/ATV Music Publishing

Michael Lynton: CEO of Sony Entertainment where he oversees the Sony’s global enterprise including Sony Music Entertainment, Sony Pictures Entertainment, and Sony/ATV Music Publishing [18]

Senior Executive Vice President & Chief Financial Officer for Sony Pictures Entertainment he oversees the company’s financial affairs and development

Philip Rowley: Senior Executive Vice President & Chief Financial Officer for Sony Pictures Entertainment he oversees the company’s financial affairs and development [18]

Executive Vice President & Chief Communications Officer of Sony Pictures Entertainment responsible for the distribution and implementation of Sony Pictures Entertainment communications

Robert Lawson: Executive Vice President & Chief Communications Officer of Sony Pictures Entertainment responsible for the distribution and implementation of Sony Pictures Entertainment communications [18]

Chairman of Sony Pictures Entertainment Motion Pictures Group in which he oversees the production and distribution of all Sony films

Tom Rothman: Chairman of Sony Pictures Entertainment Motion Pictures Group in which he oversees the production and distribution of all Sony films [18]

Senior Executive Vice President & General Counsel for Sony Pictures Entertainment and is the highest ranking legal consultant for Sony and is head of its law department

Leah Weil: Senior Executive Vice President & General Counsel for Sony Pictures Entertainment and is the highest ranking legal consultant for Sony and is head of its law department [18]

Sony Entertainment Financials

Screenshot of MarketWatch Report on Sony Corp. Stocks on Nov. 29, 2016 [13]

Sony Entertainment’s 2016 Q2 Earnings, which were finalized on September 30, 2016, show a 10.8% decrease in Sales and Operating Revenue compared to 2015’s Q2. Q2 is also showing a 45.7% decrease in Operating Income, a 40.5% decrease in Income before Income Taxes, and a 4.8% decrease in Sony Entertainment net income attributed to stockholders. These are all in comparison to the success Sony Entertainment showed in Q2 of 2015. [12] Furthermore, as of November 29, 2016, Sony Entertainment stock prices are at $29.49 per share. This is much lower in comparison to the past three months in which shares were at a high of $34.17. [13]

Sony Launches China Writers Initiative

On November 1, 2016, Sony Pictures Entertainment launched a China Writers Initiative, which will allow emerging and well-known writers from China access to the studios. Writers will be able to work with Hollywood film and television executives and screenwriters to collaborate on ideas for both Hollywood and Hollywood Chinese productions. The program was developed with Sony Pictures China and is intended to be a mutually educational program for both countries involved. Sony Pictures will select four writers at a time to travel to Los Angeles and work at the Sony Pictures Studios. A finalist will then be selected and able to produce their chosen project. [6]

Sony Dives into Virtual Reality

Sony Interactive Entertainment of America has been on the forefront of virtual reality technology and has just recently made VR accessible for all. With the release of the PlayStation VR in October 2016, virtual reality is available for all gamers who wish to take gaming to a new level. Virtual reality takes players into an immersive atmosphere never experienced before, one in which players are in the game themselves and experience something entirely different from traditional gaming. The release of the PlayStation VR included 30 games, but Sony Interactive Entertainment predicts that the PlayStation VR will have 50 games by the end of the year. President Shawn Layden of Sony Interactive Entertainment commented that virtual reality brings a “new medium into the homes of PS4 fans”. Sony Interactive Entertainment hopes that virtual reality will soon enter the homes of many average Americans, as more and more interactive experiences independent of gaming are released. A variety of VR experiences such as Hulu, Allumette, Invasion! and others will soon offer their own interactive experiences. [9]

[11]

Sony’s PlayStation VR outsold other virtual reality headsets released in 2016, including the HTC Vive and Facebook’s Oculus Rift. The PlayStation VR is predicted to outsell both the HTC Vive and Oculus Rift by more than 295,000 headsets, which is largely due to price. The PlayStation VR is a simple add on to the PlayStation 4, so users find this headset to be a better choice since many already own the console. However, SuperData Research’s director of research Stephanie Llamas seems to think that without a push in marketing from Sony, they will forever remain behind their potential.

-Is 2016 The Year Virtual Reality Finally Goes Mainstream? by NPR [14]

New Chairman and CEO of Sony Music

Michael Lynton, CEO of Sony Entertainment, announced that Doug Morris will transition from operational management of Sony Music Entertainment and assume the role of Chairman in April 2017, and Rob Stringer, who was formerly Chairman and CEO of Columbia Records, will become CEO of Sony Music. Over the last six years as CEO, Morris has increased Sony Music’s market share and profitability. This has helped Sony achieve its status as the second largest music company in the world. He has also helped Sony reach its impressive status by initiating partnerships with record labels, extending a joint venture deal with Syco Entertainment, and by supporting the growth and development of Vevo, which he founded with Eric Schmidt in 2009. [4]

Rob Stringer, new CEO of Sony Music [17]

New Bob Dylan releases from Sony Music

A massive 36CD box set of Bob Dylan’s 1966 concert tours of the US, UK, Europe, and Australia was released on November 11 by Columbia Records and Legacy Recordings, the catalog division of Sony Music Entertainment. The box set, “The 1966 Live Recordings”, commemorates the 50th anniversary of the live performances. The recordings are drawn from three main sources: soundboards, CBS Records mobile recordings, and audience tapes. The majority of the recordings are previously unreleased in any format and are being made available for the first time ever. [10]

Sony Pictures Classics Acquires The Comedian

Sony Pictures Classics has announced that they’ve acquired North American rights to Taylor Hackford’s comedy, THE COMEDIAN, starring Robert De Niro and Danny DeVito. Written by Art Linson, the film centers around an aging comic whose attempts to reinvent himself fail to impress an audience that only wants to know him as a former television character he played. Warner Bros. International will be handling foreign distribution of the film, under its deal with Cinelou.[2]

Sony Pictures Acquires TEN Sports From ZEE

Sony Pictures have entered into agreements to acquire TEN Sports Network from Zee Entertainment Enterprises Limited for 385 million dollars. The acquisition will add South Asia’s leading sports network to SPN’s portfolio of channels. Ten Sports holds broadcast rights to wrestling, cricket, football, golf, motorsports, and cycling events. SPN comprises Sony Entertainment Television, one of India’s leading Hindi general entertainment television channels.[5]

Sony has acquired TEN Sports Network from Zee Entertainment Enterprises [16]

Sony and Multi-Deal International

In its commitment to broaden its global presence and its support of local language productions, Sony Pictures International Productions has signed a multi-picture development deal with filmmakers Eduardo Cisneros and Jason Shuman. The deal will allow Mexico and LA-based Cisneros and Shuman to write and produce three new films. Cisneros is one of the most successful writers in the Latin American film industry, with successes such as Instructions Not Included and Familia P. Luche. In 2014, Cisneros and Shuman began collaborating, writing the FOX feature comedy “Upgrade.” [3]

Sony Recognized as a Leader in Combating Climate Change

For the second year, Sony has been recognized as one of the highest performing companies on the CDP Japan 500 Climate Change Report 2016. CDP surveyed over 5,500 companies globally to compile their list. Their inclusion in the list recognizes the company’s effort to reduce the energy consumption of its manufactured products, curb greenhouse gas emissions at its operating sites, and accelerate use of renewable energy. Sony is one of 193 companies worldwide to be ranked as an “A” company, a distinction it has achieved for 2 consecutive years. [1]

Actions Sony has taken to combat climate change [19]

Works Cited

Sony Recognized as a Leader in Combating Climate Change in the CDP Japan 500 Climate Change Report 2016 for 2nd Consecutive Year. Retrieved November 27, 2016.
SONY PICTURES CLASSICS ACQUIRES CINELOU’S THE COMEDIAN. Retrieved November 27, 2016.
SONY PICTURES INTERNATIONAL PRODUCTIONS SIGNS MULTI-PICTURE DEVELOPMENT DEAL WITH EDUARDO CISNEROS AND JASON SHUMAN. Retrieved November 27, 2016.
ROB STRINGER PROMOTED TO CHIEF EXECUTIVE OFFICER OF SONY MUSIC ENTERTAINMENT. Retrieved November 27, 2016.
Sony Pictures To Acquire TEN Sports From ZEE. Retrieved November 27, 2016.
SONY PICTURES ENTERTAINMENT MOTION PICTURE GROUP LAUNCHES CHINA WRITERS INITIATIVE. Sony Pictures. Retrieved: November 28, 2016.
Who We Are. Sony.com. Retrieved: November 29, 2016.
Company News. Sony.com. Retrieved: November 27, 2016.
Gilbert, Ben (November 29, 2016). PlayStation is on track to crush Facebook and HTC in the first year of VR sales. Business Insider. Retrieved: November 28, 2016.
Columbia/Legacy Set to Release Bob Dylan: The 1966 Live Recordings, A Monumental Box Set featuring Every Known Recording from the Artist’s Mythic and Controversial 1966 Tour of the US, UK, Europe and Australia. Retrieved November 27, 2016.
PlayStation VR – Games Preview Summer 2016 | PSVR. Youtube.com. Retrieved November 28, 2016.
Sony Corporation 2016 Q2 Report. Retrieved November 26, 2016. https://www.sony.net/SonyInfo/IR/library/fr/16q2_sony.pdf
MarketWatch Reports on Sony Corporation Stocks. Retrieved November 29, 2016. http://www.marketwatch.com/investing/stock/sne/profile
NPR on Virtual Reality. Retrieved November 25, 2016. http://www.npr.org/sections/alltechconsidered/2015/12/30/461432244/is-2016-the-year-virtual-reality-finally-goes-mainstream
Sony Entertainment Logo. Retrieved November 27, 2016. https://www.sony.co.uk
Ten Sports Logo. Retrieved November 28, 2016. http://www.afaqs.com/news/story/44872_Ten-Sports-unveils-new-network-logo
Rob Stringer Photo. Retrieved November 29, 2016. https://www.sonymusic.com/executives/rob-stringer/
Sony Management Team. Retrieved November 29, 2019. http://www.sonypictures.com/corp/management.html
Sony CRS Reporting. Retrieved November 29, 2016. https://www.sony.net/SonyInfo/csr_report/environment/

21st Century Fox

Posted on October 16, 2016 by gemarzol

Georgia Velkes, Jenna Levine, and Gabrielle Marzolf

Overview

In 1985, News Corporation, a newspaper company from Australia owned by Rupert Murdoch, acquired Twentieth Century Fox Film Corporation. Murdoch subsequently
built the company into one of the biggest media companies in the world. [1]

Rupert Murdoch
Executive Chairman

In 2012, News Corporation split into two companies. News Corporation kept all the newspaper assets and media assets were put into a new company named 21st Century Fox. 21st Century Fox has holdings in multiple media businesses internationally and in the United States, including broadcast and cable television networks like FOX, FX, Fox News Channel, and National Geographic, which reach over 1.8 billion subscribers. [2] The film company, 20th Century Fox, is one of the Big Six Hollywood Studios that produce and distribute films worldwide.

Financials

The company had a strong fiscal quarter ending September 30, 2016 with total revenue increasing 7% to $6.51 billion and a net income increase of 22% to $821 million. [3] A significant portion of that boost came from the Cable Network Programming division.

Gretchen Carlson, former anchor at Fox News

The Fox News Channel experienced significant growth, despite the Roger Ailes scandal in the beginning of the quarter, in which former anchor Gretchen Carlson sued Ailes for sexual harassment. Fox settled the lawsuit, which incited controversy throughout the company, and Ailes resigned. During the lawsuit, Fox faced great controversy and criticism, which increased when Ailes left the company with a $40 million exit agreement.

Roger Ailes, former CEO/Chairman of Fox News

In spite of the controversy, cable revenues increased 10% to $3.81 billion, driven by higher ratings and advertising revenue. The US presidential election, broadcasted on Fox News, increased domestic advertising revenue by 6% and gained the network more viewers. The film business revenue increased more than 6.8% to $1.91 billion which is credited to the theatrical release of “Independence Day: Resurgence” and the home entertainment release of “Deadpool” during the quarter. [4] The positive earnings release showed a 14.6% rise in the stock price over the past 3 months, gaining $3.62. [5]

New Licensing Agreements

As the television industry and television consumption transforms, 21st Century Fox’s goal is to become a central player in the new digital age. Fox Networks Group recently made a deal with AT&T Inc. and its DirecTV subsidiary. DirectTV launched a streaming service called DirecTV Now that allows viewers to stream their programming instead of watching it via satellite transmission. Fox News, Fox Business, FX and many more Fox networks will be available on AT&T’s live streaming service in addition to the content offered to DirecTV subscribers. [6] Fox has also made a licensing deal with Hulu to carry Fox channels on the new over-the-top (OTT) live TV subscription service Hulu will soon release. [7] The deal includes the FOX broadcast network along with the Fox Sports channels, National Geographic and more.

While 21st Century Fox licenses content to companies that partner programming with new technology like OTT providers, issues have arisen with subscriptions services like Netflix. In September, 21st Century Fox filed a lawsuit against Netflix for illegally “poaching” two under-contract executives: Tara Flynn, the former VP of Creative Affairs at Fox21, and Marcos Waltenberg, the former VP of Promotions at 20th Century Fox. [8] In retaliation, Netflix sued 21st Century Fox for the alleged use of illegal contract clauses. The outcome of these lawsuits could potentially impact how businesses manage employment contracts in the future. [9]

TV Ratings

This past quarter Fox Networks Group saw a huge increase of ratings with not only the presidential election and Fox News, but also the FOX network as a result of their rights to the World Series.

Fox News (http://www.foxnews.com)

Huge interest in this year’s presidential election saw primetime coverage reach a total of 71 million viewers, and Fox News channel’s 12.2 million viewers beat out CNN’s 11.2 million views for the most viewers of any cable channel for the 7pm-3am time slot, leaning toward a generally conservative audience. [10] When the election results announced Donald Trump as president elect, Fox News Channel maintained over 10 million viewers.

This fall, Fox’s overall ratings for the season rose from fourth to first place, with nearly 40 million viewers and a 12.1 rating with the 18-49 demographic. Previously, NBC was the number one network, however the World Series ratings boosted Fox to the top with an 8% advantage over its competitors. [11] Furthermore, unlike other networks, Fox has not experienced a ratings drop related to professional football broadcasting. Analysts suggest that Fox retained viewers because the network does not show any primetime games and delivers the best overall Sunday coverage including their post-show program, The OT. [12] Over Thanksgiving, Fox Sports aired the Washington Redskins versus Dallas Cowboys game, which, with 35.1 million viewers, was the highest rated program of the holiday and the highest rated NFL game to date. [13]

20th Century Fox

20th Century Fox

Unlike the other business divisions of 21st Century Fox, the film studio exhibited a weak performance over the past year, which resulted in leadership changes. Over the summer official Fox sources announced that the Chairman/CEO of the studio, Jim Gianopulos, would leave and Stacy Snider would replace him. [14] Since Snider has taken over, she has made a number of changes senior management, resulting in the departure of the marketing president Marc Weinstock, who left for Annapurna Pictures. [15]

Deadpool (2016) official movie poster

With all the personnel changes at the studio, senior management is focusing on the upcoming slate of movies for the next two to three years. After the commercial success of “Deadpool”, the studio faces pressure to release similarly profitable films. “Avatar 2” has been rumored to be released around Christmas 2018, so the studio will face pressure to follow up the highest grossing film of all time at the global box office. Fox’s film adaption of “Assassin’s Creed” generated anticipation of how the company would transition the content from a video game format to the big screen. [16]

The film is not yet released, but the hype surrounding the film shows that Fox is not afraid to take risks, and presents the company as more forward thinking.

Fox has the production and distribution rights to Marvel characters related to the X-Men property, including X-Men, Deadpool and Wolverine. Between films utilizing these characters and sequels to popular franchises—“Alien: Covenant”, “Kingsman: Golden Circle” and a total of four Avatar sequels—the studio has a significant amount of content to exploit over the next two to five years. [17]

Conclusion

Overall, 21st Century Fox is well poised for continued growth in revenue and income going forward. Strong licensing revenue to emerging and existing OTT providers as well as traditional networks and broadcasters is expected to continue and a strong pipeline of franchise tentpole films over the next three to five years should ensure continued financial success of the film studio. The introduction of new leadership at the studio and Fox News will ensure continued growth and success at these important divisions of the company.

References:

[1] 21st Century Fox. Rupert Murdoch. Retrieved November 29, 2016. https://www.21cf.com/managment/rupert-murdoch

[2] 21st Century Fox. Investor Relations. Retrieved November 29, 2016. https://www.21cf.com/investor-relations

[3][4] Lang, Brent. November 2, 2016. Variety. 21st Century Fox Earnings Get Lift From Fox News, ‘Deadpool’ Home Entertainment Debut. Retrieved November 29, 2016. http://variety.com/2016/film/news/21st-century-fox-earnings-get-lift-from-fox-news-deadpool-home-entertainment-debut-1201907353/.

[5] Nasdaq. FOXA Earnings Data. Retrieved November 29, 2016. http://www.nasdaq.com/earnings/report/foxa

[6] Moritz, Scott. November 21, 2016. Bloomberg. AT&T Expands Fox Programming Pact to Include Online TV Service. Retrieved November 29, 2016. https://www.bloomberg.com/news/articles/2016-11-21/at-t-expands-fox-programming-pact-to-include-online-tv-service

[7] Spangler, Todd. November 1, 2016. Variety. Hulu Inks Disney, 21st Century Fox Deals for Internet TV Service. Retrieved November 29, 2016. http://variety.com/2016/digital/news/hulu-disney-21st-century-fox-live-tv-1201906066/

[8] Flint, Joe. September 16, 2016. Wall Street Journal. 21st Century Fox Sues Netflix for Poaching Employees. Retrieved November 29, 2016. http://www.wsj.com/articles/21st-century-fox-sues-netflix-for-poaching-employees-1474053655

[9] Patten, Dominic. October 19, 2016. Deadline. Netflix Hits Back At Fox In Exec-Poaching Lawsuit, Claims Studio “Bullies” Employees Into Contracts. Retrieved November 29, 2016. http://deadline.com/2016/10/netflix-fox-lawsuit-cross-complaint-executive-poaching-1201839020/

[10] O’Connell, Michael. November 9, 2016. The Hollywood Reporter. TV Ratings: 71 Million Watched 2016 Election Returns Pour In; CNN and Fox News Set Records. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/tv-ratings-nbc-leads-early-election-night-numbers-945493

[11] [12] O’Connell, Michael. November 4, 2016. The Hollywood Reporter. World Series Catapults Fox to No. 1 Slot for the Fall Season. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/world-series-catapults-fox-no-1-slot-fall-season-944192

[13] O’Connell, Michael. November 25, 2016. The Hollywood Reporter. TV Ratings: NBC Parade Climbs – But Fox Football Dominates Thanksgiving. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/tv-ratings-nbc-parade-climbs-but-fox-football-dominates-thanksgiving-950471

[14] Fleming, Mike, Jr. June 16, 2016. Deadline. Fox Makes It Official: Stacey Snider Is Chairman/CEO In June 2017; Jim Gianopulos Takes Role At 21st Century Fox. Retrieved November 29, 2016. http://deadline.com/2016/06/jim-gianopulos-stacey-snider-fox-executive-changes-1201773922/

[15] McClintock, Pamela. November 7, 2016. The Hollywood Reporter. Fox Shake-Up: Marketing President Marc Weinstock Departing Studio. Retrieved November 29, 2016. http://www.hollywoodreporter.com/news/fox-shake-up-marketing-president-marc-weinstock-departing-studio-944878

[16] Pech, Dana. November 9, 2016. Movie Pilot. Why ‘Assassin’s Creed’ Will Break The Video Game Movie Curse. Retrieved November 29, 2016. http://moviepilot.com/p/why-assassins-creed-will-break-the-video-game-movie-curse/4142547

[17] Chitwood, Adam. November 27, 2016. Collider. Fox Sets Release Dates for Two Secret Marvel Movies; Pushes ‘Kingsman 2’ to October 2017. Retrieved November 29, 2016. http://collider.com/fox-marvel-movies-release-dates-deadpool-3/

Images

(In order of appearance)

[1] Retrieved November 29, 2016. https://www.zacks.com/stock/news/194013/what-rupert-murdochs-news-corp-and-21st-century-fox-really-own

[2] Retrieved November 29, 2016. http://www.wikimedia.org/wikipedia/commons/thumb/c/c8/Rupert_Murdoch_-_Flickr_-_Eva_Rinaldi_Celebrity_and_Live_Music_Photographer.jpg/220px-Rupert_Murdoch_-_Flickr_-_Eva_Rinaldi_Celebrity_and_Live_Music_Photographer.jpg

[3] Retrieved November 29, 2016. http://cdn.thedailybeast.com/content/dailybeast/articles/2015/06/26/how-a-fox-news-host-handled-sex-assault/jcr:content/image.img.2000.jpg/1435310106558.cached.jpg

[4] Retrieved November 29, 2016. http://www.adweek.com/files/imagecache/node-inline/media-visionary-roger-ailes-hed-2015.jpg

[5] Retrieved November 29, 2016. http://global.fncstatic.com/static/v/all/img/og/og-fn-foxnews

[6] Retrieved November 29, 2016. http://www.manutd.com/sitecore/shell/~/media/D971B02AD7A246678E4092D1D2AE12C6.ashx?w=1280&h=720&rgn=0,281,2160,1501

[7] Retrieved November 29, 2016. https://images-na.ssl-images-amazon.com/images/M/MV5BMjQyODg5Njc4N15BMl5BanBnXkFtZTgwMzExMjE3NzE@._V1_UY268_CR1,0,182,268_AL_.jpg

Cumulus

Posted on October 16, 2016 by kavincen

By: Kaitlyn Vincent and Cairo Spencer

Cumulus Logo

History

Cumulus was co-founded in 1997 by brothers Lew and John Dickey in Atlanta, Georgia. The company broadcasts local programming as well as sports, syndicated media, entertainment brands and much more. The company has 447 owned-and-operated stations in 90 different US markets. The two platforms of Cumulus includes Cumulus Radio and Westwood One which contribute to massive reach of 245 million listeners per week. [1]

Similarly, Cumulus is known for the station NASH, which launched in 2013 and is the Nation’s leading provider of country music. In addition to the NASH radio sector, NASH has a country weekly magazine, television, live events and their own record label. Cumulus is now the second largest radio company behind iHeartMedia. [2] [13]

Key Executives

Mary G. Berner – President and Chief Executive Officer

John Abbot – Executive Vice President, Treasurer and Chief Financial Officer

Richard S. Denning – Senior VP, Secretary & General Counselor

Affiliates

Cumulus Radio and Westwood One are both syndicated services of Cumulus Media. In 2013, Cumulus acquired Westwood One which focuses on selling syndicated advertisements. Together they have become the exclusive radio broadcast partner to some of the biggest brands in news, entertainment, sports and talk. This includes major sports such as NFL, the NCAA and the Olympics, major events such as the Academy of Country Music Awards, the American Music Awards, the Billboard Music Awards, and even the Grammys. Cumulus has risen to become the nation’s leading provider of country music and lifestyle entertainment through its renowned NASH brand; named for the country music center that is the Nashville, Tennessee brand. NASH caters to country music fans nationwide through the use of radio programming, exclusive digital content, and live events. Cumulus Radio serves a demographically-diverse group across its 90 US markets. [1]

Cumulus and Westwood One Stations

Management

Cumulus hired Mary Berner, a former CEO of Reader’s Digest Executive, as the new Chief Executive Officer to try and turnaround the company in 2015. Before Mary stepped in, Cumulus’ stocks were dropping tremendously. One of Cumulus’ major shareholders, Crestview Partners, pushed out the founder Lew Dickey as the CEO and replaced him with Mary Berner. Before the turnover, the shares had dropped 80% of their value whereas after the turnover the shares dropped 39% after a couple of months. [8] [13]

In the coming months Mary is striving towards a “multi-year exercise” starting with fixing the operational basics. Secondly, she’ll be working on retaining the employees and improving satisfaction within the company due to a 50% turnover rate in 18 months in the company of 6,000 people. Her final area of concern is the rating decline for the company. [5]

“This company has lost more than a dollar of revenue for every dollar of expense reduction over the past four years,” she said. “So I’m focused on intelligently managing the cost structure.” – Mary Berner [7]

Although Cumulus’ headquarters is in Atlanta, Mary Berner is stationed within New York City, within the large market in which its syndicated service Westwood One caters to. According to Mary, there are four challenging feats she is facing with Cumulus which includes inescapable clean-up items from prior years, non-existent investment in systems, annual cost escalation due to the dynamic industry, and major capital investments. [5]

The New Cumulus CEO, Mary Berner

Financial

Cumulus had a low third quarter with a $286.1 million in the quarter. This was down from the $289.4 million in 2015. The low numbers are due to CEO Mary Berner’s adjustment period, the falling rating decline, and the lack of company structure. Recently however, Cumulus is heading into the fourth quarter with a positive stride with a 35.58% increase over the past 5 days. The price target for the company is currently at $5.00. Consequently, the Wall Street analysts recommend a hold recommendation for investors. [5] [8]

saupload_4dd239dc80a88d2069655e86796c52b8-1

Cumulus Media Equity Stub 2016

Cumulus is consumed in $2.5 billion in debt ever since the former CEO, Dickey Berner bought up several stations and lost Citadel back in 2010. However, a spokesperson disclosed that enough generated operational cash and asset sales will prevent Cumulus from becoming bankrupt and expects to gain $200 million at the end of 2017 from real estate sales. Furthermore, “We have no plans to file for bankruptcy and the next maturity for debt is not for three more years until May of 2019, so we have significant runway to begin to stabilize and ultimately grow the business,” the Cumulus spokesman said. [16]

In terms of trends, as of November 28, the 14-day ADX for Cumulus Media is at 39.28 which indicates a strong trend for investors. However, this number reflects the trend strength but not the direction of the trend. In another technical reading, Cumulus presently has a 14-day Commodity Channel Index of 31.93 which reflects the company’s normal oscillation since the reading is between -100 to +100. This represents how the Cumulus commodities are in a normal range between the overbought and oversold territory. These technical readings further reflect the positive direction for Cumulus entering into the fourth quarter. [6] [7] [12]

Recent Antitrust Lawsuit

Last April, Cumulus was sued for an antitrust suit by Talk Radio Network Enterprises LLC and three other Radio networks for allegedly conspiring with Westwood One, Cumulus’ advertising package bundler. This suit was filed in Oregon due to a group of radio producers claiming that Westwood One and Cumulus were trying to monopolize a national radio that solely benefits the Cumulus station while undermining independent programmers. By conspiring to monopolize, Cumulus Media and Westwood are violating the Sherman Antitrust Act. In addition, these companies are already thwarted due to Cumulus Media controlling 90% of the national syndicated ad bundling market. [9]

In a complex system of advertising bundling, the companies buying advertisements expect a certain amount of trust from Westwood One. These companies have been experiencing a lack of transparency of payment from Westwood. Similarly, Westwood has been accused of paying the companies lower than the deserved amount. However, this month the Oregon judges decided to gut the claim by rejecting half of the allegations based on prejudice. According to an attorney for the group of Radio Networks, they have no intent of stopping the suit. [10]

The Issue

While, Mary is working to solve the company’s problems, the main issue with the company is the large amount of debt it holds. This monetary debt is due to the former purchase of Citadel, a Nevada-based broadcasting holding company and the general decline in Radio revenue due to the amount of music streaming services online. Michael Harrison, a former radio station owner and publisher of RadioInfo agrees:

“Cumulus is suffering from the tail end effects of the era of consolidation… The biggest problem in the industry, he said, is “smothering debt,” – Michael Harrison [7]

Overview

The biggest question for Cumulus is how to combat the growing online streaming music services and the consolidation of radio amidst their staggering debt and turnover struggles. Cumulus must continue to cut spending and manage to find a solution that will boost revenue through services that can compete as opposed to services that tail behind the forefront of the changing world of radio. In terms of debt handling, the company has until May of 2019 to pay it off which should hopefully be enough time for Berner to stabilize the company.

Works Cited

[1] Cumulus Website. Retrieved: November 28, 2016.

[2] Jackson, Hazel. “Market Rating: Are Analysts Bullish Cumulus Media Inc (NASDAQ:CMLS) After Last Week?” Money Making Articles Hot Stuff. Retrieved: November 21, 2016.

[3] NASH Website. Retrieved: November 28, 2016.

[4] Cumulus Key Executives. Retrieved: November 28, 2016.

[5] “Big Challenges Remain For Radio’s Number Two.” Radio Ink. Streamline Publishing, Inc. Retrieved: November 28, 2016.

[6] Ho, Rodney. “Cumulus Media Drowning in Debt, Stock Slides.” Radio and TV Talk. Cox Media Group. Retrieved: November 29, 2016.

[7] Grantham, Russell. “Cumulus Media Hit by Debt, Radio Industry Troubles.” Cumulus Media Hit by Debt, Radio Industry Troubles. Cox Media Group. Retrieved: November 29, 2016.

[8] Karp, Hannah. “Cumulus CEO Aims to Revive Radio Broadcaster.” The Wall Street Journal. Dow Jones & Company. Retrieved: November 29, 2016.

[9] Sege, Adam. “Cumulus Hit With Antitrust Suit Over Advertising Payouts.” Law360. Portfolio Media, Inc. Retrieved: November 29, 2016.

[10] Koenig, Bryan. “Cumulus Media Gets Advertising Antitrust Suit Gutted.” Law360. Portfolio Media Inc. Retrieved: November 29, 2016.

[11] Oliveira, Michael Wiggins De. “Cumulus Media: A Highly Speculative Equity Stub.” Seeking Alpha. Retrieved: November 30, 2016.

[12] Weakley, Vanessa. “Looking at the Gauges on Cumulus Media Inc. (CMLS).” Microcap. Retrieved: November 30, 2016.

[13] Atkinson, Claire. “Cumulus Media’s New CEO Can’t Stop Company Slide.” NYPost. Retrieved: November 30, 2016.

[14] “Struggling Cumulus Media Loses its CFO” American City Business Journal. Retrieved: November 30, 2016.

[15] “Organizational Leadership Changes at Cumulus Media” MusicRow. Retrieved: November 30, 2016.

[16] Grantham, Russell. “Radio Giant Cumulus Tumbles After Flying High”. Cox Media Group. Retrieved: November 29, 2016.

Viacom

Posted on October 16, 2016 by eamccann

Beth McCann, Divya Yeleswarapu, Hugh Sims

http://hoitalent.com/positions/content-operator/

Viacom Logo [1]

VIACOM, INC.

1515 Broadway, New York, NY 10036

(212) 258-6000

viacom.com

ABOUT

Viacom Networks [3]

American media conglomerate Viacom, Inc. is a media company home to television, cinema, online and mobile networks and brands in over 160 countries and territories, reaching approximately 700 million subscribers around the globe.

Their leading brands include MTV, VH1, CMT, BET, Nickelodeon and its various channels, Comedy Central, Spike, and Paramount Channel. Viacom owns Paramount Pictures as well, which is a major producer and distributor for movies [2].

HISTORY

Viacom and CBS Logos [21]

Viacom got its start in 1971. Viacom acquired its various networks over the course of 30 years, purchasing various channels including MTV, Nickelodeon, and BET. In the 1990s they entered a merger with CBS [4]. However, the two separated into two companies in 2005, now known as CBS Corporation and today’s Viacom Inc. The split was made to separate radio and television from the rest of the company [21]. Today, Viacom continues to create new shows for their various networks and launch new ideas.

CURRENT AND FUTURE MEDIA

Recently, Viacom has been concerned with attracting younger viewers from children’s ages to young adults aged 18-25. They are trying to stay relevant in the developing world of streaming content but still trying to pull in viewers for live shows.

Rocko’s Modern Life Poster [5]

On Nickelodeon, Viacom is attempting to draw in new and old audiences alike with programming reminiscent of shows on in the 1990s. Viacom announced in August they would have an hour long special of the classic 90s Nickelodeon cartoon Rocko’s Modern Life [5].

In October they announced there would be a special of Double Dare, a game show from the 1980s and 1990s [6]. They later said they would be releasing Legends of the Hidden Temple: The Movie to come out based off of the popular 1990s Nickelodeon show [7]. They are attempting to appeal to a younger generation who has never seen this content as well as nostalgic young adults.

Legends of the Hidden Temple: The Movie-Official Trailer [8]

DirectTV Now Logo [15]

Viacom is also launching some of its networks on DirecTV Now, AT&T’s streaming service. They want to deliver more content to fans in more places and allow them to stream content at their own convenience [9].

However, Viacom is also developing tactics to aid in the live viewing experience for consumers. Viacom Labs created what they called a “breakthrough television format” that they hope to launch in 2017 on MTV Music. They have created a TV format that pulls livestreams of fans in a real time feed during the scheduled television show [10]. It creates an interactive and unique experience for fans and will help to motivate people to watch shows in real time rather than stream them days later.

MANAGEMENT

Philippe Dauman-Former CEO and President [11]

Within the last few months, Viacom has gone through some major changes in management. As of August 20^th, Chief Executive Philippe Dauman resigned which ended the legal fight between members of the Viacom board and Redstone’s National Amusements Inc. This is a privately held company that holds 80% of the voting shares of Viacom and CBS Corp. Under the agreement, Dauman received about $72 million and was replaced by previous COO Thomas Dooley who served as interim CEO until the end of Viacom’s fiscal year [16].

Robert Bakish-New CEO of Viacom [12]

Recently, Viacom declared that Robert Bakish will be acting chief executive replacing Tom Dooley. Bakish, a 19-year company veteran who headed the company’s international media networks, has also been named President and CEO of a newly created group called Viacom Global Entertainment Group [17]. The group will run Viacom’s most popular networks including MTV, Comedy Central, VH1, Spike and others [18].

FUTURE OF THE COMPANY

whats-next-for-the-tv-industry-find-out-from-cbs-ceo-les-moonves-at-ignition-2015

Leslie Moonves- CEO of CBS [13]

In terms of Viacom’s future, there is a lot leaning on this merger with CBS. According to The Hollywood Reporter the Viacom special committee who is working exclusively on the merger hopes to wrap everything up by the year’s end [19]. It is planned that CBS Corp. President and CEO Leslie Moonves would eventually oversee the combined entity. However, the company is determined to move forward whether as a stand-alone company or in a potential combination with CBS. Newest interim CEO Bob Bakish has a lot of goals and wants to push the company forward in terms of speed, sharing, and a global outlook. He is planning to invest in new content and to deliver significant audiences on genres other than high-dollar programming. Bakish said, “We’re not going to stand still while the CBS merger is being evaluated. I believe there’s a lot of work we can do in the near-term to make us stronger, no matter what the next chapter of Viacom is. It’s time to move forward [20].”

FINANCES

The first day of trading since the split between Viacom and CBS Corporation showed a 2.8 percent increase in the shares of CBS Corp. to $26.20, and a 1.1 percent increase in the shares of Viacom, to $41.59 [21]. In the current year 2016, they averaged out their most recent 50-day span at $41.47 per share. As of November 2016, Viacom has a 6.1% market share and is among the top 5 competitors in the cable and entertainment industry [24]. Due to the ongoing internal management battle, Viacom’s stock performance has gone down with -8.06% in the last 90 days, compared to the industry average of -0.22%. However, in comparison to CBS Corporation, Walt Disney Company, and Comcast Corporation, Viacom’s recent one day and five day stock performance, 3.58% and 1.4% respectively, has exceeded them all [22].

Viacom 52 Week Share Price [14]

This major media company has had declining performance over the last 11 years, however, it has never made negative profits and instead managed to stay afloat, but the drop in total revenue has been alarming. Over the last year their 52 Week High was $47.17 and their 52 Week Low was $38.61 [23].

Their total revenue has capped off at 13.05 B which is not where they want to be, considering that their profit margin is 15.85% and the typical average for a media company is usually around 23% [22]. In 2012, revenue increased about 16.7% because NBC Universal merged with Comcast Corporation, which provided Viacom with unforeseen and extra production materials, allowing mega growth through 2013 and the year-end stock price to cap off at $87.34 [23].

The revenue has seen a sharp decrease over the last five years by dropping 3.74% and ending the year 2015 with a drop of 44.36% to a monetary outcome of $6.18B as their gross income. It was the lowest value over the defined period. That left them with a free financing cash flow of $2.17B, which was a 12.75% decrease from the previous year 2014. However, the little glimmer of hope that Viacom took from its bleak financials into the current year 2016 is that the net operating cash flow has only been seeing growth over the last five years, and capped at a 17.43% increase coming in [22][24]. Therefore, this media conglomerate has cash to grow and operate its company through the many bumps in the reel.

OVERVIEW

Despite turmoil within the company and stress from the possible CBS, Viacom continues to move forward by creating new content for their networks and trying to reach as large an audience as possible.

SOURCES

[1] Viacom-HoiTalent. Retrieved November 25, 2016. http://hoitalent.com/company/viacom/

[2] About Viacom. Retrieved November 14, 2016. http://www.viacom.com/about/pages/default.aspx

[3] Dampier, Phillip. April 1, 2014. Stop the Cap! Viacom Demands 100% Rate Increases for Hundreds of Small Cable Systems, Military Bases. Retrieved November 14, 2016. http://stopthecap.com/2014/04/01/viacom-demands-100-rate-increases-for-hundreds-of-small-cable-systems-military-bases/

[4] Viacom Timeline. Retrieved November 14, 2016. http://www.viacom.com/about/pages/history.aspx

[5] Acquire Media. August 11, 2016. Nickelodeon Brings Back Rocko’s Modern Life for Brand-New, Original One-Hour TV Special Based on the Classic ‘90s Hit Animated Series. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=984177

[6] Acquire Media. October 6, 2016. Nickelodeon Announces Brand-New Double Dare Special Commemorating Iconic Game Show’s 30th Anniversary Year, Wednesday, Nov. 23, at 9 p.m. (ET/PT). Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992484

[7] Acquire Media. October 6, 2016. Nickelodeon’s Original TV Movie Event, Legends of the Hidden Temple, Bows Saturday, Nov. 26, at 8 P.M. (ET/PT). Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992490

[8] July 23, 2016. Legends of the Hidden Temple: The Movie l First Official Trailer I Nick – YouTube. Retrieved November 25, 2016. https://www.youtube.com/watch?v=U7eHPW7n7Ko

[9] Acquire Media. October 4, 2016. Viacom Networks to Launch on DIRECTV NOW. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992023

[10] Acquire Media. October 24, 2016. First Ever Livestream-to-TV Format Pioneered by Viacom Labs, Greenlit for On-Air Series. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=995056

[11] January 15, 2015. Viacom Extends Employment Agreement with President and Chief Executive Officer Philippe Dauman Through 2018. Retrieved November 26, 2016. http://www.businesswire.com/news/home/20150115006254/en/Viacom-Extends-Employment-Agreement-President-Chief-Executive

[12] Senior Management. Retrieved November 26, 2016. http://www.viacom.com/about/pages/seniormanagement.aspx

[13] Salem, Yasir. November 19, 2015. What’s next for the TV industry? Find out from CBS CEO Les Moonves at IGNITION 2015. Retrieved November 24, 2016. http://www.businessinsider.com/cbs-ceo-les-moonves-to-speak-at-ignition-2015-7

[14] Viacom, Inc. Retrieved November 26, 2016. https://www.google.com/finance?cid=703770

[15] DirectTV Now Logo. Retrieved November 16, 2016. http://www.multichannel.com/sites/default/files/public/styles/blog_content/public/DirecTV%20Now%20400×300.jpg?itok=Mb9HjA3j

[16] Reuters. August 20, 2016. Viacom Says CEO Dauman to Resign Post Immediately; Dooley Steps In. Retrieved November 12, 2016. http://fortune.com/2016/08/20/viacom-ceo-to-resign-immediately/

[17] Reuters. October 31, 2016. Viacom names Bob Bakish acting CEO. Retrieved November 14, 2016. http://fortune.com/2016/10/31/viacom-has-a-new-acting-ceo/

[18] Yu, Roger. November 1, 2016. Viacom names Bakish as acting CEO. Retrieved November 14, 2016. http://www.usatoday.com/story/money/2016/10/31/viacom-names-bakish-acting-ceo/93083054/

[19] Masters, Kim. November 10, 2016. CBS-Viacom Merger Intrigue as Les Moonves Pushes for Clear Control. Retrieved November 14, 2016. http://www.hollywoodreporter.com/news/cbs-viacom-merger-intrigue-as-les-moonves-pushes-clear-control-945477

[20] Lieberman, David. November 9, 2016. Viacom’s Bob Bakish Vows To Accelerate Growth As It Weighs CBS Merger. Retrieved November 16, 2016. http://deadline.com/2016/11/viacom-bob-bakish-accelerate-growth-plans-consider-cbs-merger-1201851548/

[21] Alfano, Sean. January 3, 2006. CBS, Viacom Formally Split. Retrieved November 16, 2016. http://www.cbsnews.com/news/cbs-viacom-formally-split/

[22] List of VIA’s Competitors and Stock Performance. Retrieved November 16, 2016. http://csimarket.com/stocks/competitionNO2.php?code=VIA

[23] Viacom Inc. – Stock Performance. Retrieved November 16, 2016. http://ir.viacom.com/stockquote.cfm

[24] IBISWorld US – Industry, Company and Business Research Reports and Information. Retrieved November 16, 2016. http://clients1.ibisworld.com/reports/us/industry/majorcompanies.aspx?entid=1245

Time Warner Inc.

Posted on October 16, 2016 by Barbara

By: Nubia Dandridge, John Rattazzi, Johnny Pierce

Time Warner [1]

Company

Time Warner Inc (headquartered in New York City) is an international media and entertainment conglomerate. The conglomerate is segmented into three divisions: Turner is the branch of the company consisting of cable networks and digital media. Home Box Office (HBO) is the company’s domestic premium television and streaming service which includes international premium pay. Warner Bros is the segment of the company primarily responsible for the company’s role in entertainment for television, feature length films, video-games and home video production and distribution [1].

Background

Time Warner Inc. was originally founded in 1923, under the name Warner Brother Pictures Inc. Under the direction of Polish immigrant brothers Harry, Albert, Sam, and Jack Warner, Time Warner Inc. has gone from being a nickelodeon in Pennsylvania, to one of the largest media conglomerates in the world by partnering with Home Box Office Inc. and Turner Broadcasting [2].

Television Success

One of Time Warner Inc.’s most valuable assets is HBO. The premium television service is widely recognized today for its show Game Of Thrones, but their fall series premiere of Westworld has taken viewers by storm. The series premiere telecast drew 3.3 million viewers across multiple platforms by the following morning. This opening was 1.1 million viewers greater than the first day Game Of Thrones was released back in 2011 [3]. Westworld has been approved for a second season [4] due to increased viewership from streaming services HBO Go and HBO Now, which allows viewers access to HBO programming without a subscription to the traditional HBO television service.

Film Success

In September 2016 Time Warner acquired the commercial and tv rights to the “Star Wars” collection, (valued at $250 million) including “Rogue One: A Star Wars Story” and “Star Wars: A Force Awakens.” The deal makes TBS and TNT the only networks with legal rights over the series. Time Warner made a strategic move during a volatile in which networks are hustling to lock up as much content that already has a formidable audience attached to it. The DC subsidiary of Warner Bros. is sufficiently lucrative for the entire company. In relation to the 10 DC series on air this season, total revenues for the line up have surpassed $1 billion. The CW, the joint television station owned by Warner Bros. and CBS Corp. is home to half of those series.

Warner Brothers has seen its share of success since September. With movies such as Suicide Squad earning a total gross of $325.1 million [5] and Fantastic Beasts and Where to Find Them earning a total gross of $158.1 million [6] in just two weeks has earned Warner Brothers a total gross income of roughly $806 million since the beginning of September.

Company Fallbacks

Since September, a negative mark against Time Warner Inc’s overall performance is due to low ratings for Turner Broadcasting. Turner is most known for it’s networks like TNT, TBS, CNN, Adult Swim, HLN, and Cartoon Network. ratings are down 14% across all networks as younger demographics are opting more for streaming services like Netflix and Hulu. As of more recently, quarter three of 2016 came in with numbers 8% lower than they were this time last year [7].

The other recent flaw for Time Warner Inc. has been Warner Brothers. Asides from three recently released movies, every other movie released after August has struggled to even reach its budget. If Suicide Squad, Fantastic Beasts and Where to Find Them, and Sully, weren’t counted in the total gross, Warner Brothers would not have made enough money domestically to fund the movies. While this is upsetting for Time Warner Inc. they cannot be too disappointed because this is the best year [8] that Warner Bros has had since 2009 thanks to releases earlier in the year.

The financial success of the studio does not come without its qualms. In October 2016, Director Rick Famuyiwa walked away from directing The Flash with mention of creative differences between himself and the studio as the reason for his departure [9]. Before Famuyiwa, Seth Grahame-Smith stepped down from his role as director of the same film. Analysts claim that the tension between the creative vision directors are hired to develop and the executive oversight Warner Bros exercises over such projects could impact the studio’s ability to hire directors in the future, not just for their DC projects.

AT&T and Time Warner Inc.

Time Warner’s market value currently hovers at approximately $62 billion with AT&T in position to buy the company for $85.4 billion (as of October 22nd). In September and October 2016, senior executives from both AT&T and Time Warner met informally to discuss business strategies as well as a potential merger [10] of the two conglomerates. Acquiring Time Warner would allow AT&T to control one of the world’s major providers of pay-TV and one of the nation’s largest wireless and home internet providers. AT&T would also stand to inherit an extensive collection of content and programming from HBO to CNN as well as Cartoon Network and NBA basketball programming. If the deal is approved, Jeff Bewkes will resign from his position as CEO of Time Warner Inc after the transitional phase. President Elect, Donald Trump, however has spoken against the merger having said that his administration “will not approve [the deal]…because it’s too much concentration of power in the hands of too few.”

[11]

Time Warner Finances Going Forward

The news of a merger is coming off of a strong third quarter showing from Time Warner Inc. Coming less than two weeks after the announcement of the AT&T merger, Time Warner reported a third quarter earnings of $1.83 per share on a revenue of $7.2 billion, which was a 9% increase from the expected earnings of $1.37 per share on a revenue of $6.98 billion. These impressive third quarter earnings are a result of many recent successes in content produced by Time Warner, including HBO. Home Box Office saw a 4% increase in revenue to $59 million. Yet, in 2016 while content proved to be king, HBO also saw its content library decrease. With a potential influx of cash due to the potential AT&T merger, HBO can see itself become more like Netflix faster than Netflix can become HBO, contrary to the quote [12] of Netflix CEO Ted Sarandos. Due to the $85 billion dollar pay day Time Warner would receive for the merger, HBO could see its budget for original content increase from $2.2 billion, just a third of what Netflix spends on content. The merger could also result in an affirmation of Jeff Bewkes proposal for “TV Everywhere”[13]. Although the idea has not been a success, AT&T could make it a reality with their wireless subscription package. This idea of Time Warner putting their content “everywhere” will allow for shows like Game of Thrones or Westworld to vastly increase their audience.

Overview

Although many changes are likely coming to Time Warner, no immediate changes will be apparent in the near future. The focus for this next quarter, as well as the new year, will be on accelerating user subscriptions [14] for HBO Now, which could increase in the merger with a bundle package offered with AT&T services.

Sources

Sources:

Top 3 Companies Owned By Time Warner (TWX). Retrieved November 19, 2016. http://www.investopedia.com/articles/markets/102215/top-3-companies-owned-time-warner.asp.
Time Warner Inc. Retrieved November 20, 2016. https://www.britannica.com/topic/Time-Warner-Inc
Westworld’s Shaping Up to Be an Early Ratings Success for HBO. Retrieved October 16, 2016. http://www.vulture.com/2016/10/westworld-premiere-ratings-early-success-for-hbo.html
Westworld: Season One Ratings. Retrieved November 30, 2016. http://tvseriesfinale.com/tv-show/westworld-season-one-ratings/
Suicide Squad. Retrieved November 26, 2016. http://www.boxofficemojo.com/movies/?id=dc2016.htm
Fantastic Beasts and Where to Find Them. Retrieved November 29, 2016. http://www.boxofficemojo.com/movies/?id=fantasticbeasts.htm
Turner Lacking Script For Success. Retrieved November 25, 2016. http://www.broadcastingcable.com/content/turner-lacking-script-success/153449
Warner Bros. Retrieved November 20. http://www.boxofficemojo.com/studio/chart/?studio=warnerbros.htm
‘The Flash’ Movie Loses ‘Dope’ Rich Famuyiwa (Exclusive). Retrieved on November 2, 2016. http://www.hollywoodreporter.com/heat-vision/flash-movie-loses-dope-director-rick-famuyiwa-942604
AT&T Discussed Idea of Takeover in Time Warner Meetings. Retrieved October 21, 2016. https://www.bloomberg.com/news/articles/2016-10-20/at-t-said-to-discuss-idea-of-takeover-in-time-warner-meetings
What does AT&T, Time Warner Merger mean? Retrieved October 28, 2016. https://www.youtube.com/watch?v=JOt1ZJjLxdo
What the AT&T-Time Warner merger means for HBO. Retrieved October 27, 2016. http://qz.com/818603/what-the-att-time-warner-twx-merger-means-for-hbo/
AT&T’s Time Warner Purchase Acknowledges TV Everywhere’s Failure. Retrieved October 25, 2016. https://www.bloomberg.com/news/articles/2016-10-24/at-t-s-time-warner-purchase-acknowledges-tv-everywhere-s-failure
Time Warner’s Turner Inks Deal for DC Movies. Retrieved November 2, 2016. http://variety.com/2016/biz/news/turner-dc-movies-rights-1201906942/

Time Warner

Posted on October 16, 2016 by emmichae

Lizzie Michael and Andrew Maercklein

Time Warner, Inc. logo [1]

Time Warner, Inc.

One Time Warner Center
New York, NY 10019-8016
212-484-8000

Company

Time Warner, Inc. is an entertainment and media conglomerate whose works and influence reaches all over the world. First created in 1989 in a $14 billion merger between Time, Inc. and Warner Communications, Time Warner now owns magazines such as Time, People, and Sports Illustrated; HBO, The CW, and Cinemax, as well as the Turner Broadcasting System, which in turn holds networks such as TBS, CNN and Cartoon Network; DC Comics; and one of the world’s largest production companies, Warner Brothers Entertainment. [2] [3].

Some of Time Warner’s assets. [4]

The company has undergone a few trouble spots in the past, including a $164 deal with AOL in the year 2000. [5]. The deal, which eventually proved to be misguided and led to major financial losses in 2002, was said to be “the biggest mistake in corporate history” by current CEO and Chairman Jeff Bewkes. [6]. That being said, Time Warner has since rebouded and is currently enjoying success from several of its assets, including HBO and Warner Brothers, and is looking forward to the completion of an acquisition, with a total transaction value of
$108.7 billion, with AT&T. [7].

Who are some key executives?

: Jeff Bewkes – Chairman of the Board and CEO, Time Warner Inc. [8]

: Howard M. Averill – Executive Vice President and Chief Financial Officer [8]

: Paul T. Cappuccio – Executive Vice President and General Counsel [8]

: Gary L. Ginsberg – Executive Vice President, Corporate Marketing and Communications [8]

: Karen Magee – Executive Vice President and Chief Human Resources Officer [8]

: Carol A. Melton – Executive Vice President, Global Public Policy [8]

: Olaf J. Olafsson – Executive Vice President, International and Corporate Strategy [8]

Financial information

Time Warner is a publicly traded company on the NYSE under the ticket TWX. As of 11/17/16, their current stock price is $93.20, as compared to one of their primary competitors, Walt Disney Co., who is at $98.82. [9]. On Oct. 27 the company announced cash dividends for Common Stock at $0.4025 per share, with a record date of Nov. 30. and a payment date of Dec. 15. [10] [11]. Thanks in part to the AT&T announcement, Time Warner’s stock has been on the upswing, having increased nearly 22.07% since April 2016; additionally, about 67% of analysts covering Warner’s stock rate this as a good time to buy. [11].

TW revenues and earnings per share [12]

In Warner’s 3rd quarter reports for 2016, total revenues for Turner, HBO, and Warner Broadcasting combined were at more than $7 billion, and there was an increase of $153 million in cash and cash equivalents. [13]. With the recently released Fantastic Beasts and Where to Find Them and HBO’s Westworld recently having success, revenues from ticket sales and merchandising for Time Warner can be expected to increase in 2016’s 4th quarter, and should give the company a strong year-end yield. [14].

Warner Brothers

Warner Bros. Logo [15]

Warner Bros., which was founded in 1923 and notably produced the first “talkie” in 1927’s The Jazz Singer, is one of the largest production companies in the world, with both New Line Cinema and DC Films in its toolbox. [16]. In 2015, Warner Bros.’ worldwide box office receipts exceeded $3 billion for the ninth consecutive year ($3.71 billion worldwide), and saw both international and domestic reaching the billions. [17].

[18]

The company houses several major franchises, including the Matrix series, the Harry Potter Franchise, and the world of DC Comics. In 2016 alone, multiple films were released to massive success, including Batman v Superman: Dawn of Justice, Sully, Suicide Squad, and Fantastic Beasts and Where to Find Them. Suicide Squad was in theaters for an impressive 14 weeks and earned more than $700 million worldwide, while Fantastic Beasts has been open for less than two weeks and has already made nearly $500 million. [19] [20].

This success will likely carry into 2017, as Wonder Woman, Justice League, and two more animated Lego movies are all slated for wide release. [21].

Machinima’s logo [22]

In news besides its releases, Warner Bros. also recently announced it will acquire Machinima, a “global programming service and production company” with a focus on gamer culture. [23]. The deal, which was estimated to be just slightly under $100 million, will allow Machinima to be its own entity within the Warner Bros. Digital Networks. [24].

HBO

HBO logo [31]

Home Box Office, or HBO, is one of Time Warner’s most successful divisions. In terms of its financial performance, in the 2016 third quarter HBO’s revenues increased 4%, or $59 million, to $1.4 billion due to a 5% increase in subscription revenues. [12].

HBO’s content has gone over incredibly well with viewers. HBO took home 22 Primetime Emmys at the 2016 Emmy Awards, the most of any other network for the 15^th year in a row. [12] [29]. Shows such as Veep, Game of Thrones, and Last Night with John Oliver all have loyal fan bases, while newcomer Westworld premiered in October 2016 to more than 13 million viewers. [12].

In other news, HBO just recently launched a new video streaming service in Spain, HBO España, that is expected to very well. The service offers both original HBO content, as well as films and programming from other networks as well, like Disney, Nickelodeon, and other Spanish programming. [30].

AT&T Merger

Click here for AT&T and Time Warner Merger (Video): http://nyti.ms/2exY5SK [27]

AT&T is looking to purchase Time Warner, Inc. in a $85 billion deal, and despite many setbacks, AT&T is confident the deal will go through. [25]. Were the FCC to oversee this deal, the time frame would have been elongated and the deal itself would be much less likely to go into effect. However, it is likely the deal will not be subject to the tight restrictions set by the FCC, as the FCC may be excluded from the process and the decision will be made by the Department of Justice. Randall L. Stephenson, the CEO of AT&T, is very optimistic regarding this scenario and said this deal will satisfy not only those looking for earnings growth, but also investors that are simply searching for income. [27]. However, this deal will cause AT&T to push its debt upwards of $190 billion. [27]. The average user of DirecTV Now will pay $35 per month, which translates to $1.32 gross margin, and despite an apparent lack of funding, there are expected to be approximately 15 million paid subscribers by 2020. [26].

AT&T logo [28]

Many investors are skeptical of the deal and doubt the level of success predicted by AT&T. AT&T, being the only company of its competitors to move in this direction, will be able to corner a large section of the market before anyone else. Through securing customers with a low price now, AT&T hopes to attract many more consumers in the future while still being able to raise the price of service as necessary. [26]. Furthermore, AT&T wants to boost their wireless business in an attempt to take back some of the market from other wireless companies. They plan to do this by allowing wireless users to watch DirecTV without using data. This is known as zero-rating and it’s frowned upon by the FCC because it would allow for AT&T to reduce competition, especially among its own assets. [25]. Between the low prices as well as other incentives to switch, AT&T is focused on increasing its consumer following as opposed to generating revenue. Revenue will theoretically be the focus after AT&T has accrued a mass following. In addition, it’s predicted there will be less subscription cancellations as well as a large boost in advertising revenue. [25]. Should the deal be successful, it will be one of the largest to date and will push AT&T further ahead of competitors. Should the deal not be approved, or even fail, AT&T will have to tread very carefully to avoid serious damage to the company’s finances, as well as the integrity of the company.

[27]

Resources

[1] Time Warner Cables Customer Service Phone Number, Office Address, Toll Free Helpline Support. Retrieved November 27, 2016. http://www.officeaddresshelplinenumber.com/time-warner-cables-customer-service-phone-number-office-address-toll-free-helpline-support/

[2] The Creator of Time Warner, Steven J. Ross, Is Dead at 65. Retrieved November 27, 2016. http://www.nytimes.com/1992/12/21/obituaries/the-creator-of-time-warner-steven-j-ross-is-dead-at-65.html

[3] Top 3 Companies Owned By Time Warner (TWX). Retrieved November 27, 2016. http://www.investopedia.com/articles/markets/102215/top-3-companies-owned-time-warner.asp

[4] Company Profile. Retrieved November 27, 2016. http://www.timewarner.com/company

[5] Statistics on Mergers. Retrieved November 27, 2016. https://web.archive.org/web/20120106045040/http://www.imaa-institute.org/statistics-mergers-acquisitions.html

[6] AOL merger was ‘the biggest mistake in corporate history’, believes Time Warner chief Jeff Bewkes. Retrieved November 27, 2016. http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/8031227/AOL-merger-was-the-biggest-mistake-in-corporate-history-believes-Time-Warner-chief-Jeff-Bewkes.html

[7] AT&T to Acquire Time Warner. Retrieved November 27, 2016. http://about.att.com/story/att_to_acquire_time_warner.html

[8] Senior Corporate Executives. Retrieved November 27, 2016. http://www.timewarner.com/company/management/senior-corporate-executives

[9] TWX: NY. Retrieved November 27, 2016. https://www.bloomberg.com/quote/TWX:US

[10] Time Warner Declares Regular Quarterly Cash Dividend. Retrieved November 27, 2016. http://www.timewarner.com/newsroom/press-releases/2016/10/27/time-warner-declares-regular-quarterly-cash-dividend

[11] Dividend Action: Time Warner Inc. (NYSE:TWX) advises to “Mark your calendars” for Dec 15, 2016; dividends expected to reach $0.40. Retrieved November 27, 2016. http://friscofastball.com/2016/11/27/dividend-action-time-warner-inc-nysetwx-advises-to-mark-your-calendars-for-dec-15-2016-dividends-expected-to-reach-0-40/

[12] Time Warner Inc. Revenue & Earnings Per Share (EPS). Retrieved November 27, 2016. http://www.nasdaq.com/symbol/twx/revenue-eps

[13] Earnings Releases & Related Materials. Retrieved November 27, 2016. http://ir.timewarner.com/phoenix.zhtml?c=70972&p=quarterlyearnings

[14] Weekend Box Office: November 25-27, 2016. Retrieved November 27, 2016. http://www.boxofficemojo.com/weekend/chart/

[15] Warner Bros. Logo Design Evolution. Retrieved November 28, 2016. http://annyas.com/screenshots/warner-bros-logo/

[16] Warner Bros. Entertainment Inc. Retrieved November 28, 2016. http://www.warnerbros.com/studio/divisions/warner-bros-entertainment-inc

[17] Warner Bros. Pictures. Retrieved November 28, 2016. http://www.warnerbros.com/studio/divisions/warner-bros-pictures

[18] Fantastic Beasts and Where to Find Them – Final Trailer [HD]. Retrieved November 28, 2016. https://www.youtube.com/watch?v=Vso5o11LuGU

[19] Box Office Mojo: Suicide Squad. Retrieved November 28, 2016. http://www.boxofficemojo.com/movies/?id=dc2016.htm

[20] Box Office Mojo: Fantastic Beasts and Where to Find Them. Retrieved November 28, 2016. http://www.boxofficemojo.com/movies/?id=fantasticbeasts.htm

[21] Warner Bros., Quietly Thriving, Recasts Its Own Story. Retrieved November 28, 2016. http://www.nytimes.com/2016/11/08/business/media/warner-bros-quietly-thriving-recasts-its-own-story.html

[22] Machinima. Retrieved November 28, 2016. http://www.machinima.com/

[23] Warner Bros. Entertainment to Acquire Machinima. Retrieved November 28, 2016. http://www.warnerbros.com/studio/news/warner-bros-entertainment-acquire-machinima

[24] Warner Bros. Acquires Full Control of Machinima. Retrieved November 28, 2016. http://variety.com/2016/digital/news/warner-bros-acquires-machinima-1201920793/

[25] McAlone, Nathan. “Here’s Why AT&T Is Buying Time Warner, and Why It Thinks the Government Can’t Stop the Sale.” Business Insider. Business Insider, Inc, 15 Nov. 2016. Web. 28 Nov. 2016. http://www.businessinsider.com/att-time-warner-merger-government-regulation-2016-11

[26] Molla, Rani, and Shira Ovide. “AT&T Plays It Forward.” Bloomberg.com. Bloomberg, 23 Nov. 2016. Web. 28 Nov. 2016. https://www.bloomberg.com/gadfly/articles/2016-11-23/at-t-wants-digital-video-share-with-direct-tv-now

[27] Morgenson, Gretchen. “The AT&T-Time Warner Merger: A Match Built on Hope.” The New York Times. The New York Times, 28 Oct. 2016. Web. 28 Nov. 2016. http://www.nytimes.com/2016/10/30/business/the-att-time-warner-merger-a-match-built-on-hope.html?_r=0

[28] LLC, UnderConsideration. “Reviewed.” Brand New: New Logo and Identity for AT&T by Interbrand. N.p., n.d. Web. 28 Nov. 2016. http://www.underconsideration.com/brandnew/archives/new_logo_and_identity_for_att_by_interbrand.php#.WDyz-6IrL_Q

[29] How FX Broke HBO’s Grip on the Emmy Awards. Retrieved November 28, 2016. http://fortune.com/2016/09/19/emmy-awards-2016-hbo-fx/

[30] HBO Launches in Spain, Adds Content from Disney, Nickelodeon. Retrieved November 28, 2016. http://variety.com/2016/biz/global/hbo-espana-spain-disney-nickelodeon1201927778-1201927778/

[31] HBO Logos. Retrieved November 28, 2016. https://www.homeboxoffice.com/lodging/cmp/logos.html

Principles & Practices

Website by the students of TRF235

Monthly Archives: October 2016

iHeart Media & Entertainment

iHeartMedia, Inc

200 East Base Road

San Antonio, Texas

HISTORY

iHeart Media was originally founded in San Antonio, Texas under the name Clear Channel Communications. The company was founded by Lowry Mays and B.J. McCombs in 1972. In 2008, the company became private by a leveraged buyout through Bain Capital, LLC and Thomas H. Lee Partners.

FINIANCIAL

iHEART MUSIC FESTIVALS

[23] iHeartRadio celebrated One Direction’s 2013 album Midnight Memories with a special release party.

iHEART GLOBALLY

THE FUTURE

Disney

Link

Comcast/NBCU

CBS Corp.

Sony Corporation

21st Century Fox

Cumulus

Viacom

Time Warner Inc.

Time Warner

Time Warner, Inc.

One Time Warner Center
New York, NY 10019-8016
212-484-8000

Company

Who are some key executives?

Financial information

Warner Brothers

HBO

AT&T Merger

Resources

iHeartMedia, Inc

200 East Base Road

San Antonio, Texas

HISTORY

iHeart Media was originally founded in San Antonio, Texas under the name Clear Channel Communications. The company was founded by Lowry Mays and B.J. McCombs in 1972. In 2008, the company became private by a leveraged buyout through Bain Capital, LLC and Thomas H. Lee Partners.

FINIANCIAL

iHEART MUSIC FESTIVALS

[23] iHeartRadio celebrated One Direction’s 2013 album Midnight Memories with a special release party.

iHEART GLOBALLY

THE FUTURE

Time Warner, Inc.

One Time Warner Center New York, NY 10019-8016 212-484-8000

Company

Who are some key executives?

Financial information

Warner Brothers

HBO

AT&T Merger

Resources

One Time Warner Center
New York, NY 10019-8016
212-484-8000